This still comes with component cables for those cheap enough not to want to buy HDMI. Component does 1080p on 360 jsut like HDMI.
Based on the article, it's saying that it doesn't even come with component cables, just regular composite cables for SDTVs.
"In fact, they don't even ship with component cables either, just some SD composite cables, meaning anyone with a HDTV is going to have to pay a little extra. A HD tax, if you will."