Well... I don't need this and simply put it out there for others, should they need something like this.
But, as one person explained in the comments section:
QUOTE
Many TVs for example won't display VGA at it's native res. A lot of them will only do XGA resolution on the XGA input. Also, many TVs have crappy built-in scalers. It's vastly superior to have the 360 render the graphics at 1080p so the TV does no scaling. And as many here have mentioned, very few 1080p sets will accept a 1080p60 signal via component. It only accepts 1080p from HDMI. This device would allow them to run at 60fps instead of 30. And the fact that it is 1.3 HDMI spec is very important. Many TVs and audio components will not pass through 5.1 encoded audio unless the source is also HDMI. Even though 1.0-1.2 allows for this, it doesn't always work out that way. 1.3 ensures bitstream 5.1 will be recognized.
And if that's not enough reason, some people have grounding or EFI issues in their environment. Running long analog cables can in some instances result in noise within the picture. It's not as rare as you think. Converting it to digital at the source and running a digital interconnect eliminates this problem.
Just having audio and video on one cable could be reason enough.
The above may apply to some members projectors.
And, as always, your mileage may vary.