Most receivers can easily handle a video signal, hi-def or not. And I've seen no degradation of signal quality (I hooked it up both ways, just to see). There is the added convenience of switching just on the receiver instead of the receiver AND the TV. But this convenience is rendered moot if you have a good universal remote, like a Harmony or something, that can initiate a whole bunch of changes using only one button.
I think I read that some receivers can even upconvert a 480i signal to a nice, clear 720p or 1080i output. Or maybe I was back on the crack pipe and just imagined that. I'm not sure.
cheers,
supervij