I'm well aware of these "benefits" you speak of, but it was still a crap format for video. If you were satisfied with VHS, then I'm happy for you. However, VHS was the absolute worst video format. It was the penultimate example of how end users did not compare about quality. Early YouTube also demonstrated this. Laser Discs required flipping over. VCDs required a second disc. First gen DVDs were DVD-10s which required flipping over (until they eventually got DVD-9s working).
Even with VCD being half the resolution of the SD image, it was still a much better image than VHS could ever do.