I love Photoshop. I hate that it's become an excuse for lazy work. Now whoever was talking about the VHS covers, a lot of those were... well, not lazy work, but they weren't the works of masters, but even back then you needed a bit of skill to put those things together and pay attention to all the little details, so even the rushed work has that effort as part of it's soul (effort becomes embedded in the analogue, I feel).
The real problem with DVD covers and posters these days are that they're not as long-term as they used to be: how many people buy blu-rays anymore? You don't need to see them on shelves, you see them in streaming libraries like Netflix or iTunes, where they're much smaller. It's sort of similar to what we saw when music shrunk from big records to CDs and tapes and now MP3s (anyone know what percentage album art on your iPod is compared to the size of a record cover? Genuinely curious). Movies used to play for months in theaters when the illustrated posters were in their heyday, now they're competing to stay in a second week. And everyone already knows about the movies from all the commercials on TV, the banner ads, the pop-up ads, the paid twitter accounts and so on, the poster is an afterthought because it IS one. The function of this art is responding to the world around it.
What I was talking about a few comments up, about Mondo posters and so on*, the function of a Mondo poster, or any of these alternate movie posters we see all over the web, isn't to sell a movie, it's to celebrate a movie. Which as a film fan, I love. It's why we're making such a stink about the Struzan posters, or about the VHS covers, we're celebrating, we're taking part. And now we have choice and variety like we never had before. We also have outlets like Teefury and Threadless that let us combine our celebrations together. It's gone from commercial art to art celebrating a commercial.
As for the album art, I think what we're going to find is that as streaming services and just swapping individual songs become the norm, the idea of albums is going to become obsolete, replaced with playlists and subscriptions to musicians (I already subscribe to musicians on Youtube, and I'm sure plenty of you do too). Instead of album art, we get more music videos than we ever had on MTV, by a wider variety of people with whole different skill sets, and they play more shows and more local venues, which means more gig posters and eye-catching flyers, t-shirts, bumper stickers, etc
*Here's what I had written about Mondo Posters, in response to "Mscotthay":