Blockbuster has virtually banished videocassettes from all its outlets, with the exception of some children's and Spanish titles, Home Media Retailing reported on its website Monday. It quoted a Michigan Blockbuster employee as saying, "It's definitely phasing out." However, a company spokesman denied that Blockbuster is dropping its VHS rental business, telling the trade publication that it is continuing to appraise product and format allocations on the basis of customer preference.