Like the Dr. said... eventually it will be required for "security" reasons... I find that idiotic, however... the hackers will ALWAYS find a way... so just make things reasonably priced for the services they are, and be happy.
All that said, as of now, for quality reasons? no. If you want to lose all the huge cables (5 RCA lines for component & stereo sound) then go the single HDMI. Of course, if you have a DVI cable, and then a single line (optical or RCA) for your surround system, that's not too bad.
In the end it is exactly the same as the debate for computers... DVI or VGA? VGA is analog, DVI is digital... but have you ever had signal quality issues fro VGA? Doubtful.