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I would only replace a DVD if a version became available that was significantly superior to the version that I already owned in terms of image quality or language tracks.

I did have the Blue Underground release of Don't Torture a Duckling but have now sold it due to the fact that the UK DVD features the Italian track and a much more colourful transfer.

I would never replace a DVD though due to additional special features or anything as unimportant as superior artwork. If DVDs came packaged in old bin bags it would be all the same to me.