I never collected VHS tapes because of the poor quality of the picture and sound. I havent been to a movie theater in quite some time now, I only go to see movies that would transfer quite as well to my home theater system (Star Wars, LotR, etc.). I prefer to watch movies at home than at the theater, no messy crap on the floor, no overpriced popcorn, no outrageous prices. I also tend to collect only anime, and foreign films, I rent mainstream titles, and buy a few of them if I really like them.
Also, DVDs are good for archiving, I'm sure somewhere down the road they will release something better, but the DVD standard is quite good for archival, which is something that cant be said for VHS.
--Ben