First off, "ridiculous".
Secondly, component video splits the video signal into three seperate colors for your television. Rather then cramming all of that magnetic wave all through one cable, it's broken up into three (green, blue, and red) allowing for several things to happen the biggest of which being that the colors come out "cleaner" in your video package. Furthermore, with high definition, more information can be sent through those cables resulting in a much sharper picture (which is trumped by HDMI which will be trumped by something else).
I also noticed something a little odd that someone can confirm or deny who knows more about this then me. I think that component video might be much better for games on HDTV simply because they leave much less of an after image then standard RCA. My Game Boy Player and Resident Evil 4 for the GC left some pretty icky after images. It hasn't happened with my PS2 using component video.