Mark, Ajax,
The theory sounds great, but even when you use a DVI or HDMI connection, the HD set's video processor still has to re-clock the digital video so that it "fits" the set's native resolution exactly. This brings into play the quality of the video processors in the HD set (and other factors that you'll read about). I can't go into it all here.
Turns out it isn't just a simple digital-to-digital transfer of video data. There is also a HDCP encryption code that has to be pulled out of a DVI or HDMI connection--so lots of digital processing that's unconnected to picture quality; indeed it may degrade picture quality compared to analog component video, which bypasses all the encryption garbage. There, now I've given it all away. So a DVI or HDMI may provide better picture quality, or it may not. At least you can try both analog and digital video links and compare the results.
Regards,
