That's correct! You'll see patterns of using audio as things move forward. Likewise with video. Basically, you always want to use the best available for things when it can make a difference worth having.
S-Video is an option, but because you are upgrading the TV shortly, you will want to go to component video & hdmi at that point (for video!) and there's no real point in going down that road at this time.
If you haven't gone to
www.monoprice.com yet, don't get suckered into high priced (overpriced!) cables. You can pick up a few extra cables from Monoprice and be mostly covered for your setup needs.