You have to look at it like this,
In s-video all the colors and going though one wire, thus the colors merge and blend.
with a shielded component cable you dont have that problem, 3 different wires. One problem though, if you dont spend the money on a good component cable they are knowen for picking up radio and v Fi signals. Also, without the right fiber shielding, you and get loss of signal, and bleeding edges. The xbox 360 stock cables are ok, but if you buy are core system, and you have a 42+ inch tv MAKE SURE you get the cables from Monster. they will be like 20 bucks more.
Now you may ask who cares? alittle bleeding, alittle loss. say that when your sittin 10 feet infront of a 52inch. Dont cheep out, you buy it once, your done.