First of all, the DVI input on that HDTV will not necessarily work with your video card (it's hit or miss, ask around on
http://www.avsforum.com to know for sure for your video card/HDTV combination). That DVI connection is most likely for the DVI/HDCP standard, where the uncompressed video data is heavily encrypted. DVI/HDCP is supposed to the backward compatible with standard DVI, but in practice this is often not the case.
Second, most people seem to agree that any quality difference between DVI and component is negligible. Most HDTV's can't even resolve all the pixels of HD resolutions. So if you're asking DVI or component, go with component; it's easier and much cheaper to set up.
But really, you don't want to use HD for mame. You will have to scale up the small arcade resolution all the way to HD, and it will look just like MAME does on your PC monitor - pixellated and ugly.
My conclusion - HDTV's are great, I love mine for DVD's and watching HD satellite feeds, but they're not a good solution for MAME. If your main purpose for the television is *not* MAME, then get an HDTV. Just don't spend any time or energy trying to output MAME in HD ... use S-Video.
If you want a good TV for MAME, one of those standard definition flat screens (like the Sony WEGA, Toshiba, Panasonic and JVC also make great flat, less expensive TV's) would be great. But if you want the most arcade authenticity possible get a normal curved CRT television or better yet, an arcade monitor.
Cheers,
-Mani