The VPI is no snake oil product - it's a high quality cleaning machine - one of the best 'values' for cleaning machines. If you don't care about the relative automation, you can comparable cleaning from Nitty Gritty manual machine. I would personally prefer to spend the little bit more for the increased automation of the VPI. Also, the VPI is built to do a large volume/number of cleaning in a a row, where many machines may not be suited to repeated high volume cleaning. It depends on the size of your collection and frequency of use, of course. The relative high cost ($500-$600) is due to very low volume or production. Certainly comparable machines could be sold in mass market for $150-$200 each if it was a highly demanded item and made in China.
If you have $1k budget, you may even want to buy a more expensive, further automated unit (making cleaning easier/quicker) such as the VPI 17F. This machine does ALL scrubbing and vacuuming via automation.
This type of machine should be used regularly to maintain clean records. However, if a record is especially dirty, it may benefit from an initial cleaning that is different. For example, you can use specific wood glue, pour it on the record and let it set. Later, the glue will peel off as a single sheet and ALL particles are virtually removed. Nothing else will clean this well short of ultrasonic batch cleaning - but it's best suited to very special cases as this is not a practical method of cleaning. It is a very slow process.
-Chris