First to explain the differences between the cables.
Component
It's the old fashion way of doing things. Your device will split the signal into colors, send them to the TV, and the TV assembles the image. Basically, where the old DVD, TV and VCRs used a yellow cable for video, HD devices split that into three different cables. Not a lot of magic here.
HDMI
It's digital. HDMI cables are nothing more than glorified Ethernet cables and are extremely over priced. However, just like Ethernet cables, they do more than video. They are capable of sharing an internet connection, and other common signals. An example is an HDMI cable between your TV and Sound System. If you turn down the volume on the TV it passes that signal to the Sound System since you're not using your TV speakers.
So since HDMI is the newest connection, then it's the best right?
Actually no. Yeah it has a few nifty features, but both will put out the same HD video. 1080p is no problem for either cable. The only benefit for end users is the option of sharing the Internet connection.
So why does my BluRay player only have an HDMI output?
HDMI offers benefits for the content producer. The HDMI cable will allow a secure connection between the device and the TV. If there's any type of interception of signal, then the content won't play. This is an easy way to prevent piracy.
What about my Xbox 360?
The Xbox 360 will stream all content at 1080p with the exception of Movies and TV shows purchased through Zune. This content will play at a maximum of 1080i. The difference only becomes noticeable on displays larger than 50"(usually 60" for the average viewer) Since gamers usually don't play on such a large display, it's not an issue at all.
Gold Cable?
Yeah, right. Unless the cable is actually made of gold, then you're clearly getting ripped off. The signals for HDMI are digital, you either get the image or not. There is NOT a difference between Amazon basic cables and the super expensive gold cables. Unless you're connecting devices 100 feet apart(no, literally a 100 feet or more) then you will NEVER be able to see a difference in the cables.
Hubs and HDMI splitters?
Be careful. Some devices will refuse to play content through these means. Remember the purpose of HDMI cables are to create a direct connection between the TV and the Device. I don't think very many BluRay players would play nice with a splitter or hub.
Bottom Line
So we're all getting ripped off with HDMI cables, right? The answer is yes. The cables don't offer very many benefits. Especially when our remotes are universal and our devices are wireless. The need to share connections are far and few between. There is no quality difference. The entire purpose of HDMI cables is to limit piracy and make money. Don't hesitate to use a component cable, or if you must use HDMI, get the cheapest one you can find.
Feature
|
HDMI
|
Component
|
1080p Image Quality
|
Yes
|
Yes
|
BluRay Support
|
Yes
|
No(limited)
|
Connection Sharing
|
Yes
|
No
|
Cost
|
Very Expensive
|
Cheap
|
Unless you need to use an HDMI cable, you can usually skip on them and save quite a bit of cash. As a second option, you can get HDMI cables online for cheap. There's the argument that "you get what you pay for" and then there's common sense. HDMI cables are not better.