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Component is probably 99.99% of the way there. Colours are technically more accurate with RGB (whether through SCART or VGA), but the difference between TV sets is going to be far bigger than the difference between component and RGB.
The biggest quality difference isn't about the cables - it's finding a CRT that can handle 480p. The most prevalent of these would be CRT PC monitors, which is why VGA tends to be the recommended choice as far as Dreamcast is concerned.
I haven’t played the Dreamcast since they were an active system, but if you already have the cables to get S-video into your monitor you’re probably fine with that. Technically component would be better, but I don’t know how noticeable the improvement would be. The main improvement would be in color, but S-video wasn’t bad. I would have to doublecheck if S-video supports progressive scan, but if you’re at SD resolution on a CRT I wouldn’t expect you to notice a difference between interlaced or progressive video. Interlaced video was made for CRTs and wasn’t actually bad there, never mind how we appreciate and prefer progressive video on modern flat screens.
The VGA adapter is great
Then you can go vga to hdmi, but those overheat for gaming.
I don't have anything with VGA anymore unfortunately
Well i mean if there is a normal Sega display to vga you could then convert it to hdmi easy enough.