Nah man, the motion smearing is only mitigated due to the objectively inferior visual fidelity of VHS. Since DVD is a clearer, sharper picture, the DNR smearing becomes more apparent.
I’ll give you audio, though - it’s the same mix, but analog HiFi on the VHS and compressed 192kbps AC3 on the DVD.
For the 1993 telecine master, which is the same master used for the Definitive Collection laserdisc, the Faces VHS and laserdisc releases, and the GOUT DVD:
Video: DVD > LD > VHS
Audio: LD > VHS > DVD
And that’s pretty much objective fact. You might prefer the VHS because the format’s deficiencies hide some of the master’s inherent flaws, but it’s not actually better than the GOUT DVD release.
As for which of the LD releases of the 1993 master is better (DC or Faces), I couldn’t say as I don’t own a laserdisc player.