Tackling everything at once,
My TV
doesn't have S-Video input it has VGA input and that was a typo, sorry! Must have been thinking about S-video ... accidentally typed S-Video. As for things being "phased out," If my TV is any sign, composite may be phased out as well. My TV doesn't have separate composite and component inputs - you just plug into component and the TV "switches modes." A little worrying, but at the same time I think my TV is a stripped down model for sale at a cheaper price.
As for the Sabrent, it has 2 and a half stars on amazon. o_o;
Anything over $100 is really over my price range. It's also a big price to pay to keep up a Sega Saturn. I took a look at a Japanese comparison between the two and I didn't see the XRGB-3 being such a huge difference that I needed to buy it. Maybe in the future when there are no composite inputs it would be a wise investment.
But what about the XRGB-2? I might be able to find a decent price on that on yahoo in the coming months.
My model number, for those wondering, is LN22C350 ... specifically with a D1D after it.
Edit: Here are images showing the difference between the HUpSC2 and the XRGB-2
http://ta3.jp/game/upscan/us-marl.jpg
http://ta3.jp/game/upscan/x2-marl.jpg
http://ta3.jp/game/upscan/us-sakura.jpg
http://ta3.jp/game/upscan/x2-sakura.jpg
Looks like the HUpSC2 does a pretty good job, but the XRGB-2 is clearer.