Composite connection for STR-DG910

I'm aiming the new SONY STR-DG910 AV Receiver but this receiver doesn't comes with any s-video connection but will upconvert all signal to HDMI output.


The question,

Will my satellite signal (they only feed us with SD material only) deteriorate a lot if I use composite to connect to it and output through HDMI? (the HDMI only "up-convert" and not "up-scale")


What i like about the DG910 is that it accept audio of LPCM through HDMI (it comes with HDMI ver 1.2a) and can accept 5.1/7.1 ch sound from it, also decode the SACD signal through HDMI, so I would have the least cables to run to the Receiver and to the TV as well.


And I would like to do all the switching from the receiver so the TV will only left if on at the HDMI connection only, no need to switch two times, off course I could link the satellite direct to the TV if I wanted but that would mean another set of cables.


Alternative another model, the STR-DA1200ES which comes with s-video inputs at a higher price but only upconvert s-video to component and only HDMI ver 1.1, so no multichannel sound from the HDMI input, I'll need the digital connection for that, and that's mean more cables.


My current 5.1 setup :

SONY KLVV40A

Samsung HD-950

Nokia Satellite DVB-T Decoder

SONY Playstation 3

SONY STR-DE545

SONY surround speakers

INFINITY Bookshelf speaker


Any advise on this matter is appreciated.