Im not sure where you get the impression that 
VCD's are bad quality. In fact VCD's typically 
have a higher resolution than VHS or broadcast 
TV. VCD's typically run around 275 to 300 lines 
of horizontal resolution, which is higher than 
VHS at 250. DVD's run approx: 550 lines, and LD's 
(Laser Disc) Runs about 350. Also, the audio 
quality of VCD's are higher than VHS, not to 
mention the fact that they are an optical medium, 
so they won't wear out if you watch them a lot.

Most of the anime downloads you find on the net 
these days are taken directly from bootlegged 
VCD's anyways. Hover Dam is correct that the 
majority of the VCD's you find are pirated in 
Taiwan or HK. However, you can usually find legit 
copies from retailers in Japan. Plus, many anime 
shows are not avalible yet on DVD, so sometimes 
VCD makes logical sence. Granted, VCD is a dying 
format, produced by Sony and Philips in the late 
1980's, but it should still be awhile before DVD 
finally kills it off.

Ok, thats about it. Sorry since this has nothing 
to do with cels...
-Derratte