Technical Question

I know if I use the "analog audio" outs of a CD player, the actual player is doing the DAC. If I use digital out (optical, coaxil), the receiver will do the DAC. Now, does the same apply with video? If I use the HDMI connection on a blu ray player and connect to my TV, does the TV do the actual video conversion? Just curious...If the TV does the conversion, why spend more on a top line BD player (disregarding features...just talking about video quality)?