Please bear with me as I do not post here often, but I spend a whole lot of time reading the posts here.
I have yet to pull the trigger on an R5000 mod and I keep thinking about the alternatives. The R5000 mod is not an option for everyone/every content provider as the mod only works with some STBs thereby limiting your options. The mod is also expensive, $500 per unit.
That being said, the yet to arrive HD encoding solutions that are surfacing (Hauppauge HD encoding from component connection) are cheaper, $250 with lower street prices down the road given the history with other such devices. You would also have to include the cost for a device of some sort for channel changing, say a USB-UIRT, about $50.
But here is the kicker IMHO, there has been much discussions about the content producers/providers/distributors wishing to close the "analog hole" to protect their content. I have read that the providers would downgrade the contents quality when outputting through component while maintaining the full quality when outputting over HDMI. Obviously, this is not upon us now, but if I am going to spend $500 for two HD sources for my Sage system, this is in the back of my mind. If this is really only in the cards for BluRay and HD-DVD players, big deal. But it seems like Dish is already talking about this.
I also expect that the capture over component will not be as good as the capture of the stream that the R5000 offers (digital>analog>analog>digital compressed in MPEG4 versus digital stream in original format directly).
So, what is one to do ? I am really trying to have the conversation. I don't know the answer, but would love to hear your take collectively.