HDMI, the greatest thing to hit multimedia since someone slapped moldy bread on a soldier's wound, right?
"It is a digital alternative to consumer analog standards, such as radio frequency (RF) coaxial cable, composite video, S-Video, SCART, component video, D-Terminal, or VGA." - Source
Not so fast. While HDMI promises one connection per device, it's not exactly an improvement in either video or audio quality:
The best standard "prior" to HDMI in terms of video quality was VGA, which supports "up to 2048×1536px @85 Hz (388 MHz)." - Source
The latest version of HDMI, meanwhile, sports a resolution of 2560×1600p75 (75 Hz refresh rate, progressive). - Source
So, is VGA inferior to HDMI? Nope. In fact, it'll push higher resolutions at higher refresh rates (85 Hz). At the HDMI/Blu-ray standard of 60 fps (p60), HDMI can do 1920x1200 with 30-bit per pixel color. But VGA can do 1920x1200, 30-bits at 85 Hz.
For audio quality, pre-HDMI solution was S/PDIF (RCA coax or TOSLINK fiber optic), which supports 24-bit DAT-quality rates of 48 kHz. Specifically, it was "originally limited to 48 kHz at 20 bits. Extended to support all modern formats, except Dolby Digital Plus, TrueHD, and DTS HD audio streams." - Source
So, is TOSLINK inferior to HDMI? Yes, but only marginally. The cable itself is more than capable of transmitting full Dolby Digital Plus (DD+ or E-AC-3 (Enhanced AC-3), but the S/PDIFF Tx/Rx electronics sending and receiving the light signal fall short.
Is it some inherent limit of the cables themselves?
Nope. It's been engineered that way to sell you ridiculously expensive HDMI cables are huge markups...
At least that's what was planned. You can still buy 1.3 or earlier HDMI cables for $60, or you can buy the latest version, 1.4, for as little as $12 online.
In the meantime, I'm chugging along with a Blu-ray player using component video and S/PDIF (TOSLINK) audio, and my DTS audio system never sounded better. As for video, I've an old 27" Sony flatscreen with component inputs that sports unbelievably realistic color, and whose resolution is remarkable when in 16:9 compressed mode.
For my computer, I'm using VGA at 1920x1200 @ 85 Hz video and S/PDIF (RCA coax) audio.
HDMI? Fuhgettabout it.



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