I can't help you with a Hugo/Hugo2 comparison. I think you should however compare it to the TT variant, since you are comparing one desktop variant with another. I know there is a crazy difference in price, but I'd personally never opt for such a small/light item for desktop use - you'l pull it all over the table when you move the headphone cable, especially if you are sitting at a far distance from the Chord.
Regarding the 4 stars: That was also worrying me to no end. But I took a chance on the TA-ZH1ES, and I honestly can't tell what it is that What Hi-fi might be hearing on the analog inputs that they don't like. I'm more inclined to think that their analog source is either not up to par with their digital sources, or the ADC is clipping due to incorrect input levels.
I'm using the ZH1 with a Thorens TD2001 turntable, with Benz Micro Silver MC cart together with a Thel Audio Phono-X RIAA. Prior to the ZH1, I was outputting the Phono-X output to an Emmeline XP-7. The ZH1 produces a much, much cleaner sound - effortless and layered. Nothing less than a day/night difference. You can surely do better, but you are going to pay for it.
And regarding What Hi-fi and their reviews: At least some of their reviews are biased and with cons that don't make any sense. Especially, if something becomes too mainstream, e.g. Sony, NAD, Onkoy etc. then it isn't "special enough" to receive much critical acclaim. Take a look at some of their other reviews, also for different product categories.