Well I mention the vga-scart-component signal path for a few reasons:
HDMI is usually fixed at 31khz resolutions (480p) and above for all converters out there. While this would indeed be ideal for a game running in native 480p like modern consoles/pc games, most arcade games are originally at much lower 15khz resolutions for instance 240p.
Now you could set Mame to output at 480p and it would work, but you'd be losing out on the native sharpness of the original resolution, and possibly inducing some lag/tearing due to stretching the resolution up. By all means if you're just looking for it just show up and be playable hdmi is an option. It depends how much of a stickler you are.

Where VGA comes in is as so: it's technically an analog RGB signal at 31khz. Through proper drivers (such as crt_emudriver) the vga port on a Radeon can actually send a
15khz RGB signal. This 15khz RGB signal can create a wide variety of low resolutions and refresh rates - a game that was originally 240p can now be sent to the monitor as a native 240p game with no resolution stretching or blurring. Old arcade games mainly used 15khz RGB so they will look very authentic. Arcade games back in the day mainly used this 15khz RGB type of signal over bare wiring.
So where scart comes in is: Europe and the UK's scart cable can carry 15khz RGB just fine (in fact this was how many people were hooking up game consoles there.) The Scart converter I linked to transcodes that 15khz RGB signal from a Scart plug into Component without altering the resolution - component can actually be made from an rgb signal with some minor circuitry so it's not so much converting as transcoding.
So for example with a 240p game -
HDMI:
240p game > Your computer/mame resolution output over HDMI > scaling that into 480p component with the hdmi to component box (scaling may affect the quality) > game is now 480p, quality may vary greatly especially with diff. converters
VGA/RGB:
240p game > 240p computer output over vga, now possible with special drivers > simple vga to scart cable/adapter > rgb scart to component converter > game is still in 240p, no stretching has occurred and no resolution conversion has occurred, game is razor sharp.
Hopefully this clears a few things up for you? Feel free to ask questions
