You should be just fine the way you are planning to do it.
All else being equal, composite video is of lower quality than S-video which in turn is of lesser quality than component video. And except for just-catching-on digital connections like DVI and Firewire, component is what almost all consumers will use to transfer high def signals (as well as 480p signals from progressive scan DVD players).
Video switching is just that: switching between multiple sources. If you only have one component source, and already have the cable from your DVD to the TV, leave it as it is. Of course you need to switch both the 950 and your TV when changing sources.
But let's say your TV only has one component input and you add another source with one. Say a high-def sat box. Then you could run one cable from your 950 component out to the HDTV, and connect the DVD and sat to the 950 and let it do the work of switching between sources.
There will be no ultimate difference in video quality.
As has been noted in other threads however, there can be a difference in cabling costs depending on your layout. If your HDTV is far away from your 950 / DVD / sat, then it might be less expensive to run two short component cables to the 950, and one long one to the HDTV, than to run two long ones direct to the HDTV. And vice versa.
Choose whichever is most convenient - and least expensive - or not. As I said, there's going to be no difference in picture quality as the 950's component video switching is as benign as it gets.
Regards.
Jeff Mackwood
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Jeff Mackwood