The big issues/questions with component switching:
How many MHz bandwidth do you need for 1080i component switching? And when the receiver spec says 35/40/50/70 MHz, at how many db down is that? 3db? The bandwidths for receivers are all over the map; about the only thing for sure is that 25MHz isn't enough.
Does the receiver upconvert SVideo/composite to component? If so, does it upconvert to component 480i or (in rare cases) 480p or more?
Is the user-interface visible on component? (until recently, I think the answer was mostly no).
Is there any visible impact on the signal when you go through the receiver's component switching, either from bandwidth (as above), crosstalk, or noise? In theory, direct connections will always be cleaner, but in practice it may not make a difference and you may get a lot fo extra functionality/utility out of going through the receiver (UI, upconversion, less cables, not having to switch inputs on the monitor/TV, etc).
FYI, trying to teach my inlaws (ages ~69 and 78) to switch inputs on the HDTV (with yet another remote) depending on whether they're watching a DVD or the cable box, etc is Not Easy. It's hard enough to get them to know to switch inputs on the receiver (in fact, they pretty much don't remember that currently, but I'm sure I can teach them that).
FYI, the high-end Kenwood's (5090/5700/5900) upconvert everything to component and put the UI on component; I think they're 35MHz bandwidth BTW.