DVD with HDMI out plays DVD's in 720p. normal yellow wire is 480p. You can see the difference is big. So using the HDMI wire with your new TV, you will see a fast improvement in picture quality. Now blue ray is 1080p, so from DVD to Blue Ray is not a big difference in picture quality but sound is uncompressed and pretty sweet. Now buying a Blue Ray player is the same price as a PS3 so it's no secret people prefer to buy that. I on the other hand bought a laptop with HDMI port with Blue Ray player. So if you are not a gamer then that can be the alternate thing to do because the laptop can play anything. Plus HDMI carries sound so you can watch all your youtube or downloads straight off your machine.
My 2 cents.
DVD with HDMI out plays DVD's in 720p. normal yellow wire is 480p. You can see the difference is big. So using the HDMI wire with your new TV, you will see a fast improvement in picture quality. Now blue ray is 1080p, so from DVD to Blue Ray is not a big difference in picture quality but sound is uncompressed and pretty sweet. Now buying a Blue Ray player is the same price as a PS3 so it's no secret people prefer to buy that. I on the other hand bought a laptop with HDMI port with Blue Ray player. So if you are not a gamer then that can be the alternate thing to do because the laptop can play anything. Plus HDMI carries sound so you can watch all your youtube or downloads straight off your machine.