1) The 20AF41 is a standard definition TV (I've got one in the bedroom, actually), and as such will not support progressive scan video. You can use component cables for interlaced playback, however (I'm doing that with a Toshiba SD1600 player, which is not a particularly good player).
2) For component video with Outlaw cables, you would need three of the PSC cables (which are rated as 75ohm cables and therefore can be used for coaxial digital audio and for composite video - with one PSC - and component video - with three PSC's). As for the future of analog video, it's a little complicated. There are still a ton of devices (SD and HD TV's, DVD players, satellite and cable boxes) that offer component video connections as the highest quality signal path. The lifespan of all that existing equipment suggests that we'll be hooking up gear with component cables for a while longer. DVI is here, but it's not across-the-board yet. Many people are reporting that DVI output from HD cable receivers offers no benefit over component, meaning that component is still a sensible path to use even on many HD displays. The flip side, however, is that there is a chance that hardware manufacturers will begin to migrate to digital video outputs for HD signals and limit component analog outputs to 480p - many of the new DVI-equipped "unconverting" DVD players are already doing this by offering 720p or 1080i upconversion of DVD's at the DVI output but only allowing 480p at the component output. If you are worried about ending up with useless cables in the future, however, I wouldn't sweat it too much - not only can those cables be used for coaxial digital audio, but there will also be all of those older pieces of gear out there that will allow for a healthy used market for component video cables for a long while to come.
3) Many SACD's are still released in stereo (many in stereo only, in fact), but I'm not sure how many of the multi-channel discs also contain a stereo track. DVD-Audio started life as a multi-channel format, and so there are a large number of DVD-A discs that do not include a high-resolution stereo track at all. My DVD-Audio player has always been set up in a surround system, so I haven't paid much attention, but I would expect that you would lose a significant amount of information if you used the 5.1 analog output on a multi-channel disc and only listened to the left and right channels. The stereo analog output may provide a down-mixed stereo output for both formats, but I'm not certain of that.
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