I'm not following why would software still be inferior playback to now ancient hardware? Isn't that sort of like suggesting digital can't replay a vinyl record transcoded to digital as well?
For a long time a great S-VHS deck, professional Time-Base-Corrector and so on from a TV studio, was the better option over vhs-decode software, especially on bad tapes. But now, I'd go with vhs-decode any day.