That's a small price for all the features you get. I'm not buying any more VHS Anime, mostly because I realize that VHS tapes don't last forever. I think DVD will take a few years to take off, but not quite as long as regular CDs took to replace casette tapes. CDs came out in the beginning of the 80's, but they've only recently replaced casette tapes as the medium of choice for most people. When that happens, economies of scale will kick in, causing DVD movies to drop in price.
Many people are confused about exactly what it is.
I will attempt to explain it here as simply as possible. DIVX machines involve more than just a player and a disc. Go to Circuit City 2. Buy a player 3. Go home, hook up your player 6.