I kinda like it. We already use video, still projections and film projections and light effects to try and create an atmosphere at our nights and parties. The next logical step (and I wish I could afford it) would be to step up to digital VJ gear, using laptops and lcd projectors.
Although I'm personally easily pleased - good tunes and just a single strobe does for me - I think a lot more people are starting to expect more from their nights out. So we try and make the whole thing an experience, trying to set the mood and atmosphere using visual imagery.
I think we're going to see alot more VJing in the future. And when it's done well, like with Coldcut, it can be awesome. Vision is a sense as well, so you may as well stimulate it as part of the experience. It's good to have something for the head when the music is moving your body.