Yes, you can connect the component video directly to the TV and the audio output to the AVR.
The input and output on your AVR is there for convenience purpose. to enable you to do the switching via the AVR. And yes it doubles the cable requirement but some prefer that kind of set-up. Totally your choice.
Can the Component Video Cable be connected directly from the DVD player to the TV? And the Coax from the DVD player to the AVR?
Yes.
Why is there a Comp In/Out on the AVR? Doesnt that double the cables I have to buy?
Strictly for convenience. In my case for example, I have component from the cable box and the DVD player going into the my AVR, with one component going into the TV. One switch on the AVR does it all.
You do not have to spend a fortune on component cables.
