DivX is best for PC viewing cause all of the deinterlacing and AA is already done for you during the encoding. a good 2-pass DivX encode can easily be better then a DVD on a PC
Hold on there now

Divx can be deinterlaced during encoding using a deinterlacing filter, or it could just be encoded from progressive source material, or it could be encoded interlaced for smoother playback on an interlacing display....just like MPEG-2 for DVD authoring.
Divx can also be better than material on a DVD sure, but only because the quality of video on a DVD is completely dependant on the quality of the source of footage used to author the DVD. Same with a Divx file, the end product depends on the quality of the source and the encoding settings used.
Divx supports up to 720p resolution (or better), while MPEG-2 DVD's currently are limited to 480p and the vast majority are actually 480i, so in that respect...it can be, but MOST Divx files are simply encoded from ripped DVD's and will of course be lower quality than the original DVD.
I'd say, for the most part, while DIVX "can" be better in specific cases, DVD playback on the desktop with the right combination of filters, graphics hardware, and playback software will almost always be superior to DIVX all things being equal.