Au contrair, all you have to do is drop the single large VOB into DVDShrink, set it to split files, and set the destination to a local temporary location, and voilla, you get the files ready to burn in a conventional DVD structure. Absolutely no loss in quality.
Sorry, I meant to say they can't be burned as is and played on a regular player. Similarly, an iso file can be extracted and burnt and be playable in a regular player, but both require an extra process to do so and their only benefit is condensing the DVD to a single file. That could be a benefit if you're using some of the set top streamers on the market, but any good GUI will render that moot as you won't be navigating files to play a movie. You will simply select a DVD cover to play the movie. It's all a matter of personal taste since there a few options.