Depending on your boxes and connections component is just fine. At times I think it looks better than the digital signal.
A couple of things to keep in mind though.
If you are coming from a cable box or equivalent you will not get 1080p no matter what cable you use. Actually all you will get is 720 lines of resolution as that is all that is sent up to the birds. And the video is horribly compressed but that has nothing to do with the cables as well.
If you are coming from a PS3 or Blu-Ray player you will get up to 1080p resolution on the HDMI out (assuming the display device can handle the HDCP) but you will only get 540p on the component out. This is part of the HDCP so you cannot copy a true 1080p source.
Stick with component and don't worry about upgrading your tv just yet. 2K and maybe even 4K displays will be just around the corner...
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