Upconversion over component might provide a better picture, but you would have to determine that for yourself. I am using a Zenith DVB318 and I like the picture upconverted to 1080i over component to my Panasonic 720p LCD projector. No Denon model upconverts over component. None of the best players upconvert over component and it is certainly a subjective opinion whether a player like the Zenith DVB318 will provide a better picture compared to a good 480p player. In my opinion, it does but that isn't a universal opinion and it is very display dependent.
Chris
Chris