I would agree with this if you’re not shooting for progressive scan and if you get a good quality S-video cable.
But really, most S-Video cables available today are so poorly made. It’s just easier to find quality SCART/Component cabling in today’s market. So if you are going with S-Video, just know you can get both awesome quality and poor quality depending on the quality of the cable itself. And yes, that’s true with all analogue cables, but especially so with S-Video for some reason. Some of them don’t even carry true S-video and output composite.
The lesson here is to buy from trusted sellers only. Oh and in the case of the OP, yes… S-Video can look nearly as good as Component at 240p/480i.