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I buy DVD over VHS anytime. Quality, clarity, the extras. I also prefer the widescreen format. Besides these reasons, I get upset when the VCR decides it's hungry and there goes my money. Another nice thing is they take up less space on the shelf.
I can remember buying Horror Hotel on VHS and the copy was so bad I could hardly view it. The DVD is clean and crisp. I bought a movie on VHS when it first came out. A few weeks later it came out on widescreen tape. Now this was just around the time DVD players were coming out but I hadn't gotten one yet. Now I have the movie on DVD and have sold my VHS versions on Ebay. I do agree that we don't need 4 versions of a DVD. I like widescreen personally.
Nothing takes the place of seeing a film on the big screen, especially one as nice as the town I live in. 74 years old, restored with 1050 seats, Dolby Digital Surround Sound THX... they even have a guy playing a pipe organ on weekends. It's beautiful... but I do digress.
I don't have a problem watching a film with graininess or atmosphere especially if the directors intent was such. I just don't like it because of bad film quality or age.
Long live DVD! Now I just need one of those big 'ol plasma bad boy flat thangs to watch the talkies on.
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