I can't go into great detail, but essentially home video didn't want to spend the money on a restoration.
There are some cousins here advocating not to buy the DVD as is. I am just trying to figure out in my little mind if that is a good idea. If the NODS sales are poor that would back WB's decision in not paying for the restoration. On the other hand if the NODS sales are great would that change WB's position? Or is it that we have reached a point in time where after all of the movies' DVDs are released including the new movie, WB will completely cut off all ties to the DS franchise. I am assuming there will not be a sequel.