It's fun, practical and it does reduce VMT
Since I started doing most of my grocery-store and other short rides on my utility bike (mountain bike with a pair of wire baskets hanging off the rear rack), I've dropped my car mileage from 9000/year to less than 6000/year. Miles on my utility bike don't account for the difference, but my change in attitude does. I just drive less.
-Jonathan Krall