I can think of one niche for the VCR: a multistandard unit for playback of tapes made to different video standards. Some of these units will actually convert the video coming off the tape from different standards to the one your TV uses; others will play back or record the different standards, but require a TV that can display different standards as well. These are still rather pricey.
The DVD, especially on the computer, handles different standards much more seamlessly. Or it would, if the damn MPAA lawyers hadn’t gotten in the way with region coding.
Re: the OP… I have often heard recommendations to buy separate DVD and VCR units. The reason is, if one breaks, the other won’t be involuntarily out of commission.
This may be especially important if VCRs are cheap and badly-made these days. VCRs have a LOT of moving parts inside, and if the makers have gone for cheap nylon gears and plastic frames that break after a couple of years, as they did with inkjet printers, you don’t want your DVD player built into the same case as a boat anchor.