Sony would soon be a model of the 160GB-PlayStation 3 release that hd video is no longer over the component connection can be outputted. Users will for hd quality, a hdmi connection should use.
The change probably has to do with the new license from the aacs-encryption used in the encryption of blu-ray movies. The new terms prohibit the export of hd material on non-hdmi connections. This means that all future equipment that is capable of blu-ray discs, play hd signals only through hdmi will be able to send out.
Update 16:40
Sony has in a statement to let you know that the information from the memo is not correct. The new K-model is, according to the company, still game content and streaming video via a component to run. The watch blu-ray movies is only possible via a hdmi output.