If you can revive the V2400, holding out is an approach that is mighty hard to argue against. If you can't, there are a number of options for getting the system back to life - and even allow some opportunities for dabbling with the HD formats while we all wait for the industry to get itself sorted out.

Using HDMI/DVI in place of component can help in some cases, but it's not always going to be an upgrade. I didn't find DVI to be any better than component with my HD cable box (a Pace Micro DC-550), and in fact component might have a slight edge - although my display is also an analog device (CRT direct view) unlike the more common digital devices (LCD, DLP, LCoS). There are a number of DVD players that do offer excellent upscaling performance with DVI/HDMI, even without considering the HD-DVD and Blu-ray players that are generally best when used with HDMI output.