To decode it properly into RGB or component will mean a slight compromise in sharpness, but a gain in overall detail.
It has to be done properly though, i.e. as early as possible in the video output chain on the player.
The reason you get more detail is basically because you are designing a better output stage, as well as bypassing (in most if not all players) a fairly noisy video path that is prone to crosstalk and other artifacts. So you end up with a stable signal with a much lower noise floor, that captures 'better'. All good!
So if done properly you get a better picture out the other end. Also, most reasonable capture gear has an easier time capturing an RGB or component signal, so you get less quality loss during the capture phase as well.
You can easily tell if your output is cleaner by going to the colour and resolution test patterns on the Video Essentials disc, on our RGB output the test patterns are much clearer and the colour is so much better it is hard to explain. I will try and do some captures when I get back to the office.