You have a better time down on the dancefloor, of course.
Nevertheless, we tried VIP at Pacha one night on this past trip and it wasn't all that bad. It gives you a place to retreat to for a break. I would wander down to the dancefloor for a while, then back up for a drink and a dance around the table, then back down to the dancefloor.
The deal we were told was this: 500 euros (for table of 6) including 2 bottles of alcohol and free unlimited water and cola. We replaced one of our bottles with about 10 beers.