The problem with VHS was never image quality per see, it was image quality degradation. A brand new cassette with a decent transfer on a good quality player is as good (if not better) than the average 720p DVD. However, every time you play it, the tape gets a little worn out. Dust creeps into the machine. Grime builds up on the reader heads. The damn tape gets chewed. The autotracking no longer makes any difference. Sooner or later, your once great VHS copy is neigh unwatchable. DVD's on the other hand, while by no means indestructible, were FAR less susceptible to diminishing returns.
From the manufacturers POV though, the main draw was the massively cheaper fabrication and mastering process. No more moving parts, no more tape, no more bulky, heavy packaging. DVDs were cheaper to make, faster to produce, and MUCH cheaper to ship en masse.
Incidentally, I still own a DVD/VHS combi player...in a bag, in a closet (right next to my mountain of Star Trek Fact Files I no longer have any clue what to do with), even though I'm pretty sure I only have a handful of tapes (somewhere?!) and i don't trust that thing not to eat them. I also kept my portable Minidisc player, even though I'm pretty sure it's unusable thanks to the proprietary battery no longer holding a charge. So I may have some issues with hording old tech.
From the manufacturers POV though, the main draw was the massively cheaper fabrication and mastering process. No more moving parts, no more tape, no more bulky, heavy packaging. DVDs were cheaper to make, faster to produce, and MUCH cheaper to ship en masse.
Incidentally, I still own a DVD/VHS combi player...in a bag, in a closet (right next to my mountain of Star Trek Fact Files I no longer have any clue what to do with), even though I'm pretty sure I only have a handful of tapes (somewhere?!) and i don't trust that thing not to eat them. I also kept my portable Minidisc player, even though I'm pretty sure it's unusable thanks to the proprietary battery no longer holding a charge. So I may have some issues with hording old tech.