it's still an analog connection which means it needs to get converted twice.
Every signal has to be converted... the only questions are:
1. The quality of the conversion (can be lossless)
2. The quality of the transmission
Admittedly the quality of conversion for DVI/HDMI is better, but I don't think a human can tell the difference.
It is easy to assume that HDMI is better because it claims to be digital, but its simply not the case. DVI/HDMI has a crappy transmission method, one more akin to that of analog connections. If you want a proper transmission of data you should get display port which provides actual packet based data transmission.
component can do 1080p, the conversion and transmission does not produce a human detectable degradation, and in fact produces superior quality image with cables over 10 meters compared to DVI (because DVI starts artifacting at those lengths)... most importantly, it can NOT transmit any HDCP crap, so the biggest source of problems and quality degradation (the DRM) is de facto removed. This makes component the superior standard.