You are correct in your assement in that the onboard scaler is great. A quality 480i source with a flat freq response with component will give you a great picture.
however you will get to the next 5% with a DVI/HDMI input from a DVD player such as a 3910/2910 from Denon or a Pioneer Elite 59. The picture from these units will be slightly sharper and cleaner than a component connection at 480i.
I am currently using a 3910 via DVI to my 7205, the picture is fantastic......however it is only a small % better than 480i component from a Denon 2900.
however you will get to the next 5% with a DVI/HDMI input from a DVD player such as a 3910/2910 from Denon or a Pioneer Elite 59. The picture from these units will be slightly sharper and cleaner than a component connection at 480i.
I am currently using a 3910 via DVI to my 7205, the picture is fantastic......however it is only a small % better than 480i component from a Denon 2900.