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I have a late 2008 MacBook so I know that if I want to connect my laptop to a tv I need two cables: one for video and one for audio (while in newer models this issue is bypassable via appropriate adapters). So using the hdmi port of the mini would make my life easier.

Are there any other advantages?

For example when I first connected my laptop I needed to do some fiddling around with the displays settings to achieve a decent output: would that be necessary with the mini as well?

I've been using laptops for so long I forgot what it's like not having a display already embedded in your computer!

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In quality terms, HDMI is identical to DVI, but some TVs see DVI as a "computer input" and HDMI as a "media input", and may give you slightly different options. I'd have a quick search online to see if anyone's used your model TV with a Mac Mini, just to make sure.

By the way, unless you're running it a great distance, there's no advantage whatsoever to an expensive HDMI cable. The cheapest one you can buy is as good as any other!

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Thanks for the tip. I'm actually feeding the tv with an hdmi cable as it is (and I bought the cheapest one I could find ;). Could we say that, as far as just video is concerned, there is no difference? –  Knob Jul 25 '11 at 5:43
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If you keep your machine plugged into one display, there won't be much of any 'fiddling'. And even if you switch, 10.7 actually is supposed to help with switching displays (as in, if you go from a LCD monitor to a TV).

Another advantage is that the machine was just updated, so depending on how much you are willing to pay, you are going to get a more powerful machine than what you have now.

As you said, you will also have HDMI out, which will contain audio as well.

Finally, you will need to purchase a display, mouse, and keyboard if you don't already have one.

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The unified audio and video through the cable is a nice feature, but it should be noted that because the video is DVI which is digital (unlike VGA which is analogue) all size/shape/orientation settings are automatic and there will be no "fiddling"

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