S video consists of a separate wire for the luminance (Y) [black + white image] and the chromanance (C) [color portion]. A converter would re-multi-plex them into a narrower bandwidth, and depending on the quality of the device, add additional interference/etc.. But in essense, you'll end up with a pretty poor video signal.
A TV works in this order when processing a video signal:
Antenna or Cable: RF Input -> Composite + Audio separation -> Luminance+Chromanance video separation -> Color Component separation -> Tube
Composite video inputs: Start in above chart right after Composite separation
S Video inputs: Start after Luminance separation.
Therefore if you're starting with an SVideo signal, convert it to composite and feed it to the TV, you are now going through 2 additional levels of conversion over plugging in Svideo directly if you could:
SVideo -> Composite -> TV -> Svideo -> Component
Which basically means you can probably expect a lower quality signal than feeding Composite directly, and definitely than being able to feed svideo directly. No matter what you won't have a picture better than Composite outright, since that's the lowest common denominator.
Refer to this thread for comparisons of Composite vs S Video vs Arcade CGA:
http://www.arcadecontrols.org/yabbse/index.php?board=4;action=display;threadid=23818