How important is HDMI?


I have purchased my LCD TV (HDMI equipped) and my revel speakers, in the process of creating my home theater. My question is just how important is HDMI? There seem to be some wonderful values on equipment form fellow members, that quite honestly I could not otherwise afford, but they all seem to lack HDMI. Would I be better off with less expensive equipment with HDMI 1.3 or should I consider some the higher end equipment that may be lacking HDMI? I realize this is somewhat a broad question, but your thoughts would be appreciated.
charlie1
My HD-dvd player forces the rez, down to 720--not 480 but the PQ suffers @720.--as compared to 1080p via hdmi._
Now when we're talking "for the audio" HDMI do rule. You just can't pass Dolby-True nor DTS-ma any other way. IF you have BD get a hdmi receiver and be amazed with these new audio codecs.---My 1/3 the price receiver sound so much better---.
This thread has prompted me to expose my ignorance..

I have an older 5 channel processor (Anthem AVM-2)with of course no HDMI inputs. I would like to continue to use it.

If I purchase a BD player and plasma TV both with HDMI input/outputs how do I make best use of the older processor to get best picture and sound?

Should I run the BD directly to the plasma TV and the audio through coax or optical to the processor? What happens to the audio portion of the signal in the HDMI cable (just turn the plasm sound to mute)?

If I send the video to the processor then to the TV will it down convert?

Could an HDFury be used between the processor and the TV to get a 1080 signal to the TV?

So much I don't know! Any advice in this realm would help.
Component can be nearly as good, differences will be HDMI distance, and quality cable can be had easier and in most cases much cheaper...

Its Easier to route than Component, Can eliminate the Need for SEPARATE AUdio cables, and almost especially in todays world most of the components you will buy in the future will have better upscalling and or format options passing over the HDMI vs. Component.

So is it important, well its WAY easier, and yes in the end due to other availability and ergonomic issues will be better quality minimally 95% of the time.
Oh, one rather nasty problem with HDMI: If you keep plugging it in-out-in-out-in, etc, the contacts at your port(never in the cord...) wear out really easy and you will be 'up the creek....'

Also, N-E-V-E-R use an HDMI/DVI adaptor: it is too heavy for HDMI port and you can kiss the port...G'Bye!

If you must, use a HDMI/DVI cord without the heavy adaptor.