Actually, gregster, just to be clear - the xbox360 absoultely can output 1080p over both component and vga. It has been able to do so since the November patch and it works fine and has been confirmed.
Component outputs are perfectly capable of 1080p, it just isn't used a lot. That's because not all 1080p TVs accept 1080p signals over component. Samsungs and Sharps are able to, but not Sony, for example. If you don't believe me, check the specs for Samsung's newest LCDs - they list 1080p as an acceptable resolution over component.
I do agree that MS need to add HDMI somehow.