If you can digitize it, do it.
That's basically my motto. I recently bought a DVD Recorder on eBay as well as some DVD+R and DVD+RW disks (as opposed to DVD-R, a difference I have now learned) and my wife and I are in the process of transferring all of our VHS tapes to DVD. It's great. We're saving space and improving productivity, since with the creation of our DVD library (on an Excel spreadsheet), we're in a position to find the video we want much more quickly. I am very excited about this process as it is consistent with my digital lifestyle.