I guess I answered my own question from the manual, further down:
"HDMI Video: If the display has an HDMI input, connect the HDMI
Monitor Output to the display (see Figure 32). Thanks to the AVR 354’s
sophisticated video processing and upscaling capabilities, no other video
connections are required from the AVR to the video display. Analog
video sources (composite, S-video and component) are converted to
the HDMI format and upscaled to as much as 1080p...