I only watch movies on dvd. Its completely silly to watch them on anything else, video is totally inferior in terms of video/audio quality and lacks all that neato bonus material. I also love having the ability to choose which language i want to listen to or read(subtitles). Also, dvd's are pretty much always widescreen.. no lousy letter boxing.
I do think there is a still a place for VHS. For taping tv shows.. but thats about all its good for. Dvd players are dirt cheap now, and atleast in my area(silicon valley)tons of people own the players. Stores stock more dvd's then vhs movies now

even discount stores like target.
Can't remember who asked, but dvd looks great on hdtv. It looks better on a hdtv then on a regular tv, thats for use. The format will last.