I think it is really necessary. With Analog TVs being faded out by 2009 (http://engadget.com/entry/1234000580050352/) at the latest, the XBOX360 has to have the latest tech for the future right? They want to keep up to date, well by not using HDMI, they could really be screwing themselves over.
Also, it is a major competition factor for Sony's PS3 claim of 1080p (note, it is probably simulated, not true 1080p, but still).
You've got your story mettled up... analog BROADCASTING will be replaced by digital... meaning digital HDMI vs analog Component has nothing to do with it what so ever. :rolleyes:
the only thing that law changes is how the signal is transfered over the wire from the cable company or how your TV interprets signals coming from those dusty bunny-ears. In a lot of places cable companies have already made the full switch over to digital broadcasting.
In-fact, the place I just moved to in BFE NH only has digital cable available.
Trust me that change over wont make much difference, if any, at all. Save maybe improving the quality of some weak signal locations and bankrupting many many local broadcasters who can't afford the equipment upgrades.