Program name links to comment (used option)
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tex tex the original TeX, only dvi
etex pdftex dvi mode
eplain pdftex format eplain in dvi mode
latex pdftex format latex in dvi mode
pdftex pdftex pdf mode or dvi mode (-output-format dvi)
pdflatex pdftex format latex in pdf or dvi mode (-output-format dvi)
luatex luatex in pdf or dvi mode (-output-format dvi)
lualatex luatex format latex in pdf or dvi mode (-output-format dvi)
dviluatex luatex dvi mode
dvilualatex luatex format latex in dvi mode
xetex xetex in pdf or xdv mode (-no-pdf)
xelatex xetex format latex in pdf or xdv mode (-no-pdf)
texexec pdftex/xetex cont-en format in pdf or dvi mode (--dvi)
context luatex cont-en format in pdf mode
xmltex pdftex xml parser with dvi output
pdfxmltex pdftex xml parser in pdf or dvi mode (-output-format dvi)
jadetex pdftex Jade/OpenJade in dvi mode
pdfjadetex pdftex Jade/OpenJade in pdf or dvi mode (-output-format dvi)
mtex pdftex special format for polish in dvi mode
pdfmtex pdftex special format for polish in pdf or dvi mode (-output-format dvi)
utf8mex pdftex special format for polish in dvi mode
cslatex pdftex special format for czech/slovak in dvi mode
pdfcslatex pdftex special format for czech/slovak in pdf or dvi mode (-output-format dvi)
csplain pdftex special plain format for czech/slovak in dvi mode
pdfcsplain pdftex special plain format for czech/slovak in pdf or dvi mode (-output-format dvi)
aleph aleph TeX with unicode for multiligual in dvi mode
lamed aleph aleph with format latex in dvi mode
amstex pdftex special format in pdf or dvi mode (-output-format dvi)
texsis pdftex special format for physic papers in pdf or dvi mode (-output-format dvi)
xetex in xdv mode needs a xdvipdfmx driver, which is installed by default
aleph is no more maintained, it was a successor of omega and is now superseeded by luatex
lamed was a successor of lambda and now also superseeded by
luatex
DVI is still the primary output format for anyone using pstricks, an extended DVI format is the only output format from xetex as well as being the default (if not most common) output from pdftex, so I think the question in the title is based on a false premise.
What is true is that PDF has pretty much replaced DVI as a distribution format on the web (or before the web, on ftp and email). I think the main issue there is just the ubiquity of a viewer. If you use PDF output, or convert your DVI to PDF just about anyone with any sort of computer will already have a PDF viewer available. If you send someone a DVI file then if they are not already a TeX user they probably can neither read the file nor easily install a DVI viewer without installing an entire TeX distribution.
There is no standard for the inclusion of images in the DVI file. The DVI file format does not know anything about figures. Thus the image support is done via \special{...}. The syntax of the contents for \special depends on the DVI driver. The file in the question uses driver option dvipdfm, thus the graphics package writes the \special for dvipdfm. Since dvipdfm only converts DVI to PDF and cannot view anything, you have to use a different DVI viewer, which apparently does not support specials for dvipdfm. If you want to have the images included in the DVI viewer, you have to compile again with a different driver option to get specials for the DVI viewer with some hope, that the viewer also supports the used image format.
Best Answer
xetexin xdv mode needs axdvipdfmxdriver, which is installed by defaultalephis no more maintained, it was a successor ofomegaand is now superseeded byluatexlamedwas a successor oflambdaand now also superseeded byluatex