I may be missing something, but does your receiver have component video inputs (and outputs)? If so, then you ought to try them and compare with running the component hookups straight to the tv, as everyone suggests, and let your eyes be the judge. See if you can tell a difference, and if not, then there's the decision - convenience will win.
Then again, you may be in the same boat as me. My 4-year-old receiver does not have component video inputs and outputs, so I run the component outputs straight from the DVD to the TV (as many people do) and toggle the tv/video switch when I want to watch a DVD or switch back to vcr/tv. I don't have to do this -- I could route the DVD through the receiver via S-Video. But by doing this, a) I would not be getting the best possible quality DVD image, which only the component outputs deliver, and b) I'd be relying on my receiver to do some video conversion from the vcr and cable to S-Video, and that doesn't seem optimal (though I've never tried it). So, depending on your situation, you may want to consider this.
Birdman
