I continually experimented with automating sound-reactive video, but it was unpredictable and difficult to get a pleasing, "fluid" result which didn't cause seizures, so we always did it by hand using hardware such as EDIROL V-4 or the MX50. It was also a lot more fun to punch buttons and slam sliders to the beat of the music ;)
Do you mean current or previous pipeline? Unfortunately most projects are somewhat unique and require at least some variation, if not a complete overhaul in workflow, depending on what the customer wants. I never got a chance to use VVVV in a commercial capacity, although there is an upcoming project where we are seriously considering it. Generally we used custom in-house software (e.g. for 360 projections using 2x 4-channel MPEG-2 decoder cards) or VJ software such as ArKaos and Resolume. Like I said before, these days it's purely content production, so the pipeline is relatively similar to a game studio. We still encode everything into various QT formats and we rent hardware for shows because as you said, it's hard to keep up with ever-changing hardware demands.
If you are interested in our projects, check out http://www.motionlab.at (go the old site for now, the new site is WIP).