Not sure about component making SVideo look like crap. I don't recall any discussions with picture proof about that here in the last year, but may have missed.
Technically yes, Component should be better than SVideo, but in my experience with home DVD players at least, on good 27 and 32" sets, I can barely tell a difference betweeen SVideo and Component. I should be able to, but honestly it's tough. Between SVideo and Composite however, TONS of difference.
Again, this is being driven from a DVD player. A computer output might show off the differences even more.
The order of quality always is:
Antenna (Flat 300 ohm wire)
RF (Coax cable/cable TV)
Composite (RCA)
SVideo (mini DIN)
Component (3x RCA)
Pure RGB+Sync
Did you know at least one video game used component video outputs instead of pure RGB? GORF! (and possibly Roby Roto/Wizard of WOR since they use the same board cage set). They generate component video on board and then use a component to RGB converter off board to power the monitors. Apparently they wanted the ability to run on black and white with the Y part of the signal for some reason.