If video1 on the TV gave you the 970's on screen display and you had to change to video2 on the TV to see the DVD, then you weren't routing your DVD's video through the 970 before. You may very well have had component video from the DVD connected to the 970 before, but it sounds like there was also an s-video or composite video run straight from the DVD to the TV's video2 input - and that was what you were using.
Component straight to the TV will work well, then whenever you move to HDMI for the video you can move that component cable to the 970 monitor output - that will support any analog video connection to the 970 (composite, s-video, or component), and will still give you the on-screen menu so long as you first switch to a source that using composite or s-video (like the front input).