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Is it worth it to send the DVD and Satellite receiver, using the s-video, to the new receiver and than run the component video output to the TV?
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At least with most receivers, it won't work. Typically, component video switching in a receiver lets you switch among sources
connected via component. Most receivers won't convert composite or S-video sources to component format.
IMO, there's little point in using a component pathway from a DVD player that doesn't have a component output. The signal has already been degraded (minimally, but still to some degree) by being passed through the S-video output. You can't then improve the signal by reconverting it.
If you want the full advantage of a component connection, you'll need to replace your DVD player.
M.