1. You would want to use these if you want to use your receiver to switch all your audio and video sources to one input on your TV all at once instead of chainging inputs on your TV for video AND inputs on your receiver for audio seperately. I have two systems, a HTIB without video inputs, and a component system with video switching. Video switching is a lot more convenient, but it is no big deal to switch TV inputs when you switch to a DVD or cable/satelite box and also switch to audio input. Most of the time you will be watching TV. If your TV does not have adequate video inputs, buy the receiver with video inputs and output as you will be able to hook up more devices to your TV.

2. If you want to use your receiver as an A/V switch you will want high quality inputs and outputs. At least it must have s-video, and component video would be better. Composite video is of visibly lower quality. If you have HDTV you need the higher quality. You will see the difference. Also make sure you have several (at least 3-4 total) optical and/or coax audio inputs.

3. You will not get the sound quality with wireless and may get interference from cordless phones or WI-FI, but the main sound is coming from the front anyhow and would be a lot easier to hook up unless you have a good way to hide the wires. For the difference in price, you could buy a better system with wired speakers.