Regarding the timeline...
1996 – DVD (1998: 1% of households, 2006: 85% of households) A cheaper format, but DVD video quality was ‘good enough’ for most before HD TVs proliferated
The DVD format certainly had the potential to be better quality than Laserdisc. The standard definition LDs were composite video, which puts it at an inherent disadvantage. Not only that, but it's effectively an analog format. Contrast that with DVD, which is a component video digital format, and you have to try really hard to find content which cannot be mastered to look better on DVD than a corresponding LD.
That's not to say there weren't plenty of poorly mastered DVDs, in the early days. I'm sure some were even mastered from Laserdisc!
BTW, I used to follow Laserdisc discussions, for a while, and what I seem to recall is that only about 6 (certainly, not more than a dozen) MUSE titles were ever published.
ancient AV hardware and media isn’t that expensive compared to some of the prices retro computer component sales have achieved in recent years.
Eh, technological artifacts are more interesting than a bunch of paint splotched on a canvas. Especially when it's cheap & easy to get a print reproduction of art. It would be much more difficult & expensive to make a reproduction of these technological artifacts.
There's so much information contained in technological artifacts. I can imagine future technological archeologists analyzing them to try and figure out how they were made and to plot our technological progress, over the past century.
I'm not really a collector, though. So far, the only "museum piece" I've bought might turn out to be an Optane SSD.
; )