Thanks for the interest Gonk.
Check out this link!
http://www.hdforindies.com/2005/08/mikes-latest-thoughts-hollywoods-folly

Here is a small peice of it:

"The HD Analog Shutout - no HD on your HDTV

It looks like the Hollywood studios are requiring use of an HDMI connector with HDCP (hardware device copy protection) for high definition video content on next generation formats, HD DVD and Blu Ray. Toshiba's HD DVD has already been shown with HDMI and stated definitively that the component analog outputs will work in standard definition ONLY, even though there is no TECHNICAL reason to prevent them from working in high definition. Sony, the primary backer of the competing Blu Ray format, also owns movie studios, so it's unlikely that they wouldn't require HDMI with HDCP as well. So this means that only newer sets with HDMI will be viable for watching high definition content. For all those who've already plunked down for HDTVs that lack this HDMI with HDCP, they are SOL. And frankly, think about it - who are the folks most likely to want to adopt high def DVDs? Probably those early adopter types who bought an HDTV to watch their DVDs a few years ago, prior to the introduction of this HDCP stuff.

So what does this mean? Imagine you spent $2000-$5000 on an HDTV a couple of years ago. You're into all this new tech, you love it. So HD DVD and Blu Ray discs actually ship, and you plunk down $500-$1000 for one of the first players (assuming you're OK buying into one of two competing standards) and you take it home and pop it in your player. Woops, your set lacks HDMI with HDCP, you only have HD component analog connections. Even though they work with all of your other high definition gear, the player will quietly downsample your HD signal to standard definition. You watch the movie, and frankly, it doesn't look any better than your regular DVDs that play on your kids' $50 player. Box it up and return it, you don't think it's worth it. You could be watching a regular DVD on a $50 player on a $300-$800 TV and it would look pretty much just as good.

It was a common supposition for a few years that buying a set that LACKED this and other digital shutouts (like hardware honoring the broadcast flag) would be protection against the onerous security measures coming. Looks like this is wrong, to the point that folks who have been early adopters will be punished."