I bought a grand total of ONE movie on VHS, and that was Lethal Weapon 2 for $2 from a guy as part of a deal which included a computer game (video tape was an afterthought, cheaper than a rental). The thought of buying a movie on tape did not agree with me considering the deterioration of the tape after playing a few times and after a few years. Why buy a tape for $20 then re-purchase it in five years when its quality is terrible? No thanks.
DVD, on the other hand, struck me as excellent for several reasons. First and foremost, DVDs do not degrade to any measurable degree in the same way as VHS. Second, there is no rewinding of a DVD (big plus), which also implicates the improvements in slow motion and pausing over VHS. Third, digital audio is exquisite. Fourth, picture quality is fantastic. Fifth, extra bonuses on the DVDs -- something which I've only recently started to watch (the Highlander director/producer commentary is quite interesting). Sixth, DVDs are much, much more storable than VHS tapes, which are just so bulky and scream "old technology". 🙂
Right now, my collection comprises about 20 movies which I have purchased over the last 10 months or so. Compare that to the ONE tape I bought in the last five years I have owned a VCR. Incidentally, I bought my first standalone DVD player just prior to Thanksgiving and acquired most of my DVDs before that. It was incentive to buy the player when I had the movies (mostly bargain finds -- paid a maximum of about $15, average is around $10).