Component inputs will work fine for all those formats. Not as clean a signal path though due to the video being converted from digital to analog by the STB, then back to digital from analog for the display (for most displays - some older HD displays may not convert to digital). The practical difference may be barely noticable or not noticable at all.
The fear herem is that in the future there is a chance no HD will be available via component/analog video. But right now, there are really no drawbacks to it.
I don't have DVI / HDMI, I deemed it an exceptable trade off for me with my display choice.
My stepdad just got a new DirecTV HDTV receiver that won't seem to pass any resolution higher than 480p through the component out. I'm not sure of the model # but it is from Best Buy.
You are absolutely right it was operator error. Originally, I had the DirecTV receiver's resolution set to output 480p/1080i but the TV( an older Mits 65" HD-ready set) would only accept up to 480p through it's component input. It went blue screen with anything higher.
The TV does have a "DTV" input (Component/RGBHV)that the manual says will accept 1080i so I changed to that input but still only got 480p. kept After messing with it for a while, my stepdad set the STB's resolution to "all" and finally got 1080i!
I guess I heard somewhere that STB's would eventually be limited to only pass full-res HD signals through their digital outs and the analog connections would down-res to 480i/p. I just assumed that this box did that.