I agree, i own sony headphones that are about $150 which i use for both when i dj and do audio engineering, and they can beat the output of almost any speaker. But headphones have one downside, they will cause ear damage, thats why if you ever look at professional studios and professional club dj booths, the board operator or dj listens to moniters(REALLY HIGH QUALITY SPEAKERS), because if he or she didnt they would easily go deaf.
Here is a good piece of advice, if you want the highest quality audio out of your DVD, CD player or, VCR, buy something called a headphone amp distributer, run the direct outputs from your dvd, cd player or vcr (the little white and red plugs labled audio out) into the imput of the headphone amp. Buy a good pair of headphones i recommend SONY's MDR's for about $100 and PRESTO, you have the best quality audio you can possibly get from that dvd or vcr player. If you want your whole family to be able to listen it will run you about $500 for 4 headphones and the headphone amp. That may sound kind of expensive, but this audio quality cannot be matched by any speaker system even close to that price. This same type of system is used in multimillion dollar recording studios.
I have a funny koss story, i recently bought a pair of KOSS the plug headphones(i highly recommend them, for 20 bucks they cant be beat in term of audio quality). I was using them for about a month until the headphones put out very little sound and soon became completely silent. I then bought another pair and used them for about a month when the same thing happened. I got really pissed off and decided to take them apart and see what the problem was. I found out that the problem was that ear wax was clogging up the small tube connected to the speaker and blocking sound from comming out. So using a paper clip, i cleaned both pairs out and had two pairs of headphones. LESSON LEARNED: clean ear wax out of ears on a regular basis.