VSS totally relies on the clients to manage the database. If a client drops connection in the middle of a write over the network at just the wrong time, your file is trashed on the server. Not just the tip, but all the history. Hope you have a good backup. I've been through it. It's bad news.
VSS usage over VPN or other remote connections is abysmal. It's using SMB to transfer the data, and you have to retrieve the file and all of its deltas just to get the tip. Nasty.
I've seen VSS start to act up at 1GB of data. Database errors, etc. MS (somewhere in a FAQ or KB) says that 2GB is really the max safe limit. There are no good management tools (the clients run the asylum), so you don't really get any warning about this.
Anything with a server process to provide some level of transactions and integrity control is a superior solution.