I believe they look at the HT market assume most who purchase a Blu-ray player have the latest in HT technology. The newer model HT receivers include more HDMI input/outputs and less component input/outputs. There is also the fact that upconversion isn't processed through the component connections. I think because HDMI is designed to protect copywrite infringement, it won't be another 18 months before all component connections are eliminated from DVD players. This will also stimulate a wave of new HT electronic upgrades through necessity.
However, that shouldn't affect S-video, since it is analog-only, and 480i resolution.
You can always use a VCR with composite jacks or an RF modulator for old tv's. I use my VCR as an RF modulator to run systems through it in video mode.
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