I think VPS's are a great stepping stone to Dedicated servers. It filled a gap that was missing for so many years and now they are very popular so it is easier for customers to find them.
However it all depends on the needs of the user, as to what they need in Reseller vs. VPS. No matter what, some people will just never want to run their own servers or be responsible for them. Making sure software/scripts are updated and to be bothered when it goes down, fixing it, etc. If they do go with a VPS they will probably have to hire someone to manage their VPS or get a very good managed VPS package, which are out there but can be pricey. VPS on the other hand are great for those that want to be proactive in keeping their own server up, therefore they know it is running correctly at all times. They like being responsible for the server and they feel can provide a better service to their customers.
There seems to be a thin line between the two choices, I see users go back and forth between the two all the time. Some like resellers more, some like VPS more. Its really what works for the users, I can't say one would be better than the other.