VHS video tape was never very good from the start, even when it was new technology.
It only captures 240 lines of resolution where the standard definition NTSC picture has 480. Even S-VHS can only capture 420 lines.
Yes, it was great because it allowed people to record television programs to play back later or to make home movies to save for posterity but the picture quality was never very good.
Laser Disk and DVD had better resolution but at the expense of being able to record.
The point of using the VHS tape in the video above was the LACK of quality, along with the ever present dropouts, noise, etc.
"...the heart and mind are the true lens of the camera".
- Yousuf Karsh
"We are what we repeatedly do. Excellence, then, is not an act, but a habit".