Well, you see the main problem is the entry price. Right now, just about everyone has a VHS VRC. They do a decent job with the existing format. Enough so that the only people who really notice poor quality are ones how have very good TV's. With the price of a decent VCR at about $50-80, it is going to be very hard for a new standard to push into this market at the current time. Most solutions that currently exist (DVD burners) cost in the $300-600 range. And again, you will not really see any performance increase unless you already have a new high quality TV. There are so few benefits right now to the general population that upgrading to a new technology format is just not worth it.
Two things need to happen before people will start to upgrade. Cost of new technologies comes down dramatically and existing customers upgrade their TV's to new high quality versions. A third thing also needs to happen, the killer application also needs to be created with these new generation recorders. Tivo's might be on the correct path to that killer app, but they lack the permenent archivablity that is needed to go with it. Sony is currently trying something, but it will fail only because it is giving too much control to the media companies with reguards to what people can record with their system. Basically if you combine the new Tivo service (the one with network streaming video and PVR capabilities) along with a DVD burner, you would probably have a solution that people would want to actually buy (minus the subscription service). This system should be completely strings free. No monthly fee's or hidden charges. It needs to be fully controlable by the customer with no restrictions to what they can and can not record and for how long they can store it.
Remember it also needs to be low cost as well. If a system like the one I described above becomes available in the $180-250 range, people will buy into this new technology and finally replace their VCR's. But we are not quite at this price yet. A small sized hard drive can be used in this system, only needing about 20-40 gigs of space (since you can burn the movies you want to DVD, you only need to store a few on the system itself for streaming capability and for viewing/evaluation for burn). But with DVD burners for PC's still priced at about $200, a burner with the logic to do the PVR abilities as well as network streaming, this unit in todays price is probably in the $600-800 range still, which is just too expensive to be feasible.