Video switching can be extremely convenient - many HDTV's have at least two component video inputs but often only one DVI or HDMI input (at least at the moment), and it isn't hard to exceed those limitations. I've got four sources that use component or DVI outputs - DVD recorder with component, upsampling DVD player with DVI, universal DVD player with component, and HD cable with component or DVI - and if I were to delve into an HD optical format that would be a fifth.

This hobby is like many others related to technology - there's always something new just around the corner. At the moment, the biggie is HD-DVD and Blu-ray. At the end of the day, it's all personal choice to wait or not. Personally, I'm not pleased with the way the format war is taking shape, so my tendency is to not postpone upgrades to wait for it, but that doesn't mean you should do the same. As Ritz pointed out, it'll be next year before any DD+/DTS-HD/Dolby TrueHD compatible receivers and processors appear, and even longer before they are widespread.