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HDMI
A High-Definition Multimedia Interface cable is a digital means of transferring video and audio signals from the PS3 to a compatible HD display. An HDMI cable carries both types of signals at the same time. The cable will display PS3 games in resolutions up to 1,080 pixels, which is the highest resolution available on the gaming system. Without an HDMI cable, there are other options to still play "2K10."
Component
Component cables come in a group of five, that combine to transfer video and audio signals from the PS3 to an HD display. Component cables support video resolutions up to 1,080 pixels. Component cables carry analog signals that HDTVs transfer to digital before displaying a picture.
Difference
While HDMI cables may offer a better overall picture because the signal is transferred digitally, a picture from component cables shouldn't be much different. The age and manufacturer of the HDTV being used may affect the picture quality from both types of cables, and it wouldn't be unheard of if you thought the picture looked better with component cables on a specific display.
AV
Using the common yellow, red and white standard definition AV cables will output PS3 games at 480 interlaced. This resolution is not high-definition, and should only be used if the display you are connecting the PS3 to is not HD-compatible. At this resolution, the picture will need to be stretched to fit the entire screen of an HDTV, and a significant loss in clarity and detail will be apparent.