I guess I don't understand the 'all those connections' point. Yes, there are a lot of connections on the back of the A/V receiver, but really, if you don't use them on the back of the receiver, you are using them all on the back of the TV.
For some people (me) I put my gear into a rack where I have rear access, my plasma hanging an inch off the wall is a MUCH tougher place to reach if I need to add or remove components or do any service work.
Add to that, it is 50 feet from my components to the plasma, I need to split the output from the receiver to a plasma & a projector, and neither display device has enough inputs to handle all my sources...
Well, in the end, hooking everything up to the receiver adds a total, with most new receivers, of ONE component cable to your total setup mix. Hardly a lot of extra connections to make.