Great link, Jon7athan. Lots to chew on. I'm not sure I can fully appreciate the difference of DVI vs. component on the Zenith (minus the white bar of course :;) -- perhaps the component is more "colorful" (not necessarily a good thing) while the DVI is "sharper" (definitely a good thing). And it seems clear that this year's crop of new models (at least the Sonys will have HDMI connectivity). But I'm very happy with the Z TV. (Okay, I occassionally wonder if it was a mistake to go 4:3 vs. 16:9, but this is sort of an imponderable dilemma of short term benefit vs. long term gain, not to mention cost: the bottom line is that the C32V37 is at least $500 cheaper than its widescreen cousin, if not more, and about $1200 less than the reported MSRP on the forthcoming XBR960. On my budget, that's a big deal.)
Sadly, the price of a DVI switcher is probably more than what I payed for my receiver :D. And I don't know if I would have the patience to switch out the cords manually if I were to get a DVI capable DVD player.
At the moment we are using a non-progressive scan DVD player with component cables, and the picture is pretty good (okay, awesome). We recently watched the new special edition of "The Usual Suspects" which claimed to have a "New HD Transfer", and it was magnificent.
So we will see. As you point out, the times they are a changing. And the beauty of the Zenith, I think, is it's exceptionally well-priced functionality as a transition TV.