I believe that IS/VR/Whateveryourbrandcallsit is for the most part a needless luxury. There are applications for which it is very useful, but for 95% of the time, it serves no useful function.
Maybe 95% of your shooting doesn't require it, but most other photographers benefit from it. For instance, you don't always want to shoot wide open with your f2.8. Sometimes, you need f8 or f11 for a deeper focus. Sometimes, you're in low-light areas, like indoors. Sometimes, you want to stick to iso200 and below at any given cost. Sometimes there are unforeseen circumstances where IS would have been vital to the shot. "Needless luxury" is such an incorrect judgment, it unsettles me to see you type that. If that's what you think about it, it makes me wonder if you ever push the envelope.
EDIT: I'm sometimes quite aggressive with my opinions. Sorry for insulting you.
...how many good tripods & heads can you buy for what you'd save buying non VR lenses vice their more expensive counterparts. As well, given the comparitive delicacy of the components that make up a VR system, it seems something that could easily be damaged when lenses are getting hard use.
Yes, tripods save you money, but you can't often use them, depending on what you're shooting.
I shot a wedding last weekend with a 20D and my K10 around my neck, both at iso1600 and with apertures wide open and I was still having to shoot at 1/30th to 1/90th. Flash was not permitted. There was no time for tripods. IS saved my butt with both cameras.
We may see more in-camera IS because the market demands it, but anyone with a rudimentary sense of physics knows that it's a crap solution. A 600mm lens requires a different solution than a 35mm lens.
I apologize for this, but you don't know what you're talking about. Cameras with in-body stabilization know the focal length of the lens that is mounted, and they adjust the performance of the mechanism accordingly. You can see this when you put a vintage lens on a Pentax. The body can't communicate with any really old lens, so it asks the user what the focal length of the lens is, so that the anti-shake can work as accurately as possible.
I concede that the results show that in-body is still not as accurate as in-lens, but it's a miniscule difference. And at such a dramatically reduced cost, the benefits are sufficient. Not to mention it still does a damned good job, giving you a consistent 3-stop advantage over anyone not using it.