Steve, it is totally specific to the individual and the TV. In my case, I'd say it definitely looks better but different eyes may not see the same thing. Some also say that the PQ is better with component video than it is with HDMI. I couldn't notice a difference there, and it sure is nice to eliminate wires with HDMI.
Just make sure that closet has good ventilation. Some of those receivers and DVD players can throw off alot of heat!