I agree. There's a lot of nice new features in 0.9 and 1.0 it would be a shame to have to back to 0.8.6i. I have noticed VLCs DVD playback is worse on the Mac compared to Windows though. In my case, there are a lot of DVDs the teacher's use where the video is either scrambled with big blocks of green pixels everywhere or parts of the video is missing.
after that open GL tweak as above dvd playback on my mac has been fine - no issues what so ever. Running snow leopard 10.6.1