Yes, you need only one digital video and one analog video. A component video connection will pass all analog video sources (composite, s-video, and component) and will give you setup menu OSD (assuming you select an input that uses a composite/s-video source, which will have the menu overlayed before being transcoded to the component).

BetterCables has well-made stuff, but I think they've gotten overpriced in recent years - perhaps not as much so as most Monster cables (which generally don't have as good a build quality), but enough to make me lose interest in them. I've had excellent luck with a combination of Outlaw cables (their PDO is a remarkable value - much better made than BetterCables' optical and at a fraction of the price - and their other cables are also a good value) and Blue Jeans Cables (which offer build quality and performance easily on par with the BetterCables stuff I've used at a much more reasonable price).