HDCP has not yet been enforced but when that day comes (probably with the release of HD material via disk), you will not get a HD signal via component connections with content using HDCP. Most studios will be using HDCP for content protection using a flag\handshake.
That is why it is discontinued. Also, MPEG 4 and VC1 compression formats require new hardware and this also makes them obsolete in the future. With the new HD material and standard definition programming going HD by 2007 (Directv is), the new compression formats will provide the bandwidth necessary for this to happen.