I have a Sony Bravia 26" and I went and got the MS VGA cable after the last dashboard update. I took the cable back the next day b/c the component was better for gaming IMO for this particular TV. The colors were still better on component since the VGA still looked a little washed out, and the picture (and text more noticeably) were more sharp on the component cables. I didn't try any DVDs since I hardly watch any on my 360, but since the VGA cable upscales it might be worth it to you if you use the 360 alot as a DVD player. It should also be noted that my TV's native resolution 1366x768 while the 360 resolution uses 1360x768, so this leaves some black, unused pixels on each side of the picture which i didn't like much since I have a smaller TV.
Granted this is all based on my setup which is a Sony Bravia as well, but an older 26" model.