Settle down people, come on now.
I'm not happy about them saying the HD-DVD addon, FOR NOW MS hasn't made an HDMI cable for it, but I'm not surprised and I stress the fact that this is just the decision as of RIGHT NOW.
Besides, I'm an A/V enthusiast and always have been, done years of advanced tech support for DirecTV about HTDV signals and troubleshooting and such, and so on and so forth, and I can tell you that a 720P movie or a 1080i movie on a good component cable (YPbPr/YCbCr) such as the Monster component gold-plated component cable for the 360 versus that of a potential HDMI cable you wouldn't notice much of a difference at all.
Even at 1080P, when HD-DVD starts releasing movies in 1080P (for now they still aren't, and I haven't researched WHY they don't want to yet, but they just haven't yet even though they can and have even said it would be easilly done), you won't notice hardly much of a difference at all.
Let's take the Xbox 360 component cables that come with it, though -- they are not high quality. Since every video cable except DVI and HDMI are analog cables, the higher-quality the cable is the better your picture will be. This means if I put back on my 360 component cables made by MS that came with my 360 and took off my Monster ones, sure, I'd notice a slight quality downgrade. Would it be much? No, and as a matter of fact the average person, especially adults, wouldn't tell hardly any difference even if you put two 360's side by side with one running the stock component cables and the other the Monster component cables.
Being such a big A/V enthusiast, however, I can tell the difference with my Monster component 360 cables because I look for differences and such. To me, the minor difference is worth the money, but to others it's not.
Now let's say you have one of the standalone Toshiba HD-DVD standalone units already (whether it's the $500 or $700 model, it doesn't matter). Let's say you have two of them and two of the same 720P native television as well and are playing the same HD-DVD movie in each player and have both televisions, let's say 50", side-by-side. Let us say that one of them is running to the same model TV the best component cables on the market (again, which is analog) and the other is running HDMI (same as DVI but also carries a DD5.1 signal with it, too - and - this is not analog, but digital as mentioned earlier).
How much of a difference would you see between these two side-by-side 720P TV's? It would be minimal. I've done tests like this (not with 1080P -- yet) but with every other resolution so I know what I'm talking about. The same would go for 1080i. The difference, if estimated, would be something well under a 10% quality difference in the component cables.
Let's say you have cheaper component cables, though. Ahhhh.... now you'll notice maybe up to a 10% difference or so. Why? Again, it's as simple as this: Component cables are analog and not digital. Even if you had the cheapest HDMI cable on the market and compare it to the most expensive HDMI cable on the market, you won't see a difference in quality and the same goes for DVI; why? They're digital-signal carrying cables, not analog like every other cable type.
This just goes to show many things come in to play. Even other things such as if the HDTV set is plasma, DLP, projection, or LCD... it all makes a difference, though it's minimal.
So what am I trying to get at? Sure an HDMI cable to my 50" DLP from the new HD-DVD addon when it comes out would provide a better picture than the component cables, but not by much at all - but definately more if you have cheap component cables like the ones that came with the 360.
Also let's not get off the point of the subject -- There is still a very good chance that MS will release a HDMI cable down the road (if it's possible somehow since the 360 does all the processing -- I don't personally know).
High-quality, gold-plated component cables versus cheapo-deapo ones like what comes with the 360 will show a better picture and the 24 karat gold ones by Monster really surprised me with the quality difference on the 360 and that's saying a lot since given all my previous experiments comparing this and that, this cable, that cable, this resolution, that resolution, this TV, that TV -- I expected to notice a difference, sure, but the Monster 360 component cables give me such a nicer picture than the MS component cables, and again -- when and if I get (if I can) an HDMI cable for my HD-DVD addon for my 360, I guarantee you there won't be much of a difference -- seriously. You would honestly have to put it side by side with another, replica setup to really see the difference and again I would say it'd be under 10% in quality which is hardly noticable, anyway.
MY BOTTOM LINE: It shouldn't make much of a difference AND, if MS can do it, they WILL come out with an HDMI cable for the drive because they just aren't that stupid NOT to.
God Bless and thanks for your time.
I know I'll get some people disagreeing but hey, I don't care -- I have the hands on experience and have done side-by-sides too many times to count and I know I haven't said anything untruthful in this entire post.
-Air (see sig for contact)