We all know that sound-quality wise, home AV equipment wins because of better DAC/amplification/speakers.
How about video quality?
Here, I assume that an up-scaling DVD player/BLU-ray player/High-end AV receiver is driving a HD television via HDMI.
Consider the same TV being driven by a RADEON HD4XXX/GEFORCE GT2XX via HDMI. We are using the best possible drivers/playback software on the PC.
So which option wins, in terms of sheer image quality? The PC playback hardware is definitely cheaper than a high end AV receiver/video player.
How do the two options stack up to each other?