Can you ask her why they don't upconvert output to component?
If I play insanely-paranoid

,I can understand the new HD players having the *ability* to restrict HD content to digital-only output (by using HDMI *and* turning on the encryption content bit), because digital copies could be made but putting into an existing non-HD source is just ridiculous.
The source DVD isn't HD, so just because the firmware on the player can pretend it is an HD source doesn't mean they should restrict it to HD (esp since there is no encryption bit).