Yes, there will be an amount of image quality reduction. How much ( if any ) you notice will depend on a lot of things. First and foremost, you're own eyes. Some notice differences, others like me see no difference between component and HDMI/DVI. Between component/HDMI and say single composite video ( the yellow plugs/cables )? Oh yeah, the image loss is clearly visible to all but Helen Keller.
If your TV is 1080P and you're using the PS3 as a blueray player, odds are greater you might. If TV is 720P and you don't use the PS3 as a blueray....probably not.
You don't say if you have a receiver with switchable HDMI inputs, if you do, and it has at least 3 inputs, you could go that route. Bear in mind that will also degrade the signal a bit, as anything between the source video and display device affects image quality. In other words, if you use a standalone HDMI switcher, that will affect quality. Unless one is using bottom of the barrel junk products, the amount of image loss in these scenarios is measured in microscopic detail, so you probably wont notice anything no matter which way you go.
