The follow up to that quote that isn't mentioned is that it seems that most source material is actually 24 bit (8 bits per color) so that even though HDMI is 36 compatible, most sources are still only 24 bit and only at DVI levels. I did NOT know about the 36 bit thing though, so that is some useful info, thanks.
I have seen a HDMI connection to the AE-700 as well and saw the huge quality jump from 480i to 720p or 1080i over HDMI. I'm not sure if this is indicative of the HDMI connection or the conversion process that is going on inside upconverting DVD players. I mean, are you comparing 480p component to 480p HDMI or are you comparing 480p component to 1080i or 720p HDMI? If the later (which I think is what you said) then you aren't comparing the same source really and the conversion may be what is giving you the much higher quality image, not the cable itself. As I said, when I saw a AE-700 hooked up via HDMI, I put the DVD player into 1080i mode, then into 480i mode and the quality jump was significant. It makes me wonder how good the video processors are inside the AE-700 considering that there should have been a very minimal improvement in image quality. The cable remained the same throughout.
Any insight from others?