One thing I liked about VHS over DVD was the fact that a small area of damage wouldn't render the entire movie unwatchable (unless the tape was torn). So, if the beginning of a movie got scuffed up, you could still watch the end. Other than that, I loved pretty much everything about DVDs. That said, since DVHS was basically MPEG-2 on VHS, I doubt DVHS would be better than DVD in that regard. After all, a tape-based digital filesystem can unreadable become just as easily as an optical digital filesystem.
Another thing I disliked about DVDs was the fact that you couldn't play them on a VCR, nor could you play your old VHS cassettes on a DVD player (unless you had a combo player, which I never did). Unless you could play non-digital VHS tapes on a DVHS player, I doubt I would have liked the system. In my mind, I can hear my angry father cussing in frustration after having faild to get his old VHS tapes to play on a DVHS player, with me shaking my head saying "I told you to read the label on the tape."
One thing I did like about DVDs was the fact that they could be played on things other than DVD players. The X-Box, the PS2 and any PC with a DVD drive, decoding software, and either a dedicated MPEG-2 decoder board, or a fast CPU. The latter was what made really love DVDs for the first time. That's not something one could expect from DVHS. I later discovered a number of DVD rippers, which made it possible to back up my DVDs, something I had never even thought to do with my VHS collection.
As for archiving, I doubt DVHS was that great of a format, since tapes tend to decay over time. It can be argued that DVHS probably came with some form of error correction to lessen this issue (IDK if this is true or not), but the tape would still be unreadable sooner or latter. Since there's probably no (legal) way to make a true 1:1 copy of the tape (once again, Hollywood stood in the way of innovation), I don't think it would make a practical archiving solution.