If you stay digital you can avoid having to use a program like anyDVD to get around macrovision if your outputting higher than 480p.While it won't happen on every dvd it is annoying to have to rip a movie to HDD if you were just planning on throwing it in the drive.
HDMI switching is also coming on more and more recievers so it will be more ready for the future.
Currently I use component with my 9800pro and my Sony Wega LCD projection tv. I think it looks fantastic. To be honest I like the color better than when I had it through HDMI. That being said I have to use DVD43 (it's free!) to be able to watch DVD's that I am upscaling.