Done with DVD; what next?

I don't know if this is the best topic for this question, but here goes...
CDs were introduced as the indestructible replacement for vinyl. DVDs are supposed to be indestructible too. However, I think we have all come to the realization that these optical disk technologies are fundamentally defective.
I have several disks of both types that played just fine when I bought them, but now are unplayable. I don't know if it is oxidation or scratches. Believe me, I am not using the disks as hockey pucks, coasters, or frisbees. They sit in their case until I use them.
I am not the only one. If you don’t believe me, check www.dvdtown.com/messageboard/topics/2/ among others.
I have remedied the CD issue my putting everything into an MP3 in my iPod. In the future I will only buy audio files that do not mechanically wear and fail like optical disks.
What is the alternative for DVDs? I know mpeg and Quicktime .mov files exist, but where can you buy them? Should I just stick with VHS?

CDs may not work after a long time, though I've never seen that myself, but one difference from vinyl is that they tend to work perfectly if they are working at all, compared to an increasing amount of scratches on vinyl.
The situation with VHS is worse, in that it's the player that tends to die. I've had many VHS players that will eat tapes, no matter how good condition the tape is in. I've never seen a DVD player do physical damage to a disc in the same way.
Storing sound or video in a lower quality digital format seems like a poor solution to the problem. I think though that the problem is a short lived one, only of use during the time that we have physical media and also have the storage space to use that solution to the problem. It's not an ideal solution for another reason, over the last ten years I've not had one single CD or DVD fail to continue to work, but I've had many hard drives that died, taking with them thousands of media files.
The reason I think it's a short lived problem is that the next round of media owning may not involve physical media at all. If you want to play a movie you've bought you would just go ahead and play it from the studio's servers. If you then buy an HDTV, you get the HD version streamed without having to wait for BluRay/HD DVD to sort themselves out.

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