Picking up on those cables (and RGB YUV or RGB HDMI converters in general)...
The main issue HDTVs have upscaling low res is movement. On every set I've ever seen, the picture varies in quality when static, but blurs and/or stutters when moving.
I believe this is because the TV has converted the 240p to 480i, and then DEINTERLACES the picture it just interlaced!
So it looks okay in pictures, but like crap in gameplay.
And yes, many TVs simply do not handle 240p at all over conponent. Some don't even handle 480i
They usually do both over composite,
Others have weird problems, like doubling the image vertically (Sonic 2 style) or a horizontal bar in the middle of the scnren at all times.
So yeah, very few applications for that product IMO. They'll get lots of returns when it doesn't work on 30% of HDTVs, and looks crap in another 30% of cases.
One good application is a CRT with only YUV inputs and no RGB. But that's not what they're thinking of.