In the 80s, his success with Roger Rabbit allowed him to secure financing and finish the film. This was a double-edged sword because Hollywood looked at him and expected him to hit a deadline or be destroyed. Having worked on this film for 20 years he wasn't about to rush and ruin it. So they destroyed him.
You can't blame him for that! Just another example of art being destroyed by commerce.
UPDATE: I've finished the Raggedy Ann DVD. I also put the Thief trailer and A Christmas Carol on there - I wanted to save A Christmas Carol for another disc as it's a better watch than Raggedy Ann, and might go well with Ziggy's Gift (Christmas and all) but Chris Sobieniak's disc of the Williams commercials didn't want to import into DVD Studio Pro correctly, so I went with A Christmas Carol.
I am DRAWING some art for the DVD case, myself. I've already got a few good drawings down, but am working on more to finish it. These characters are very difficult to draw - they have a deceptively simple look about them, and the curves are impeccably well chosen - so I'm trying to use the best reference available and duplicate Williams' work as best I can.
About the trailer: Tweaked? I avoided showing any lower quality/workprint material in the trailer - It's roughly all from the Miramax version. The witch stuff is only available in pan& scan so there's a few shots from the witch sequence in the trailer which were recreated in widescreen by me - I wanted to show that she'd be in there! And there's a shot pulling away from Zigzag, a famous shot when he meets One Eye - I added about 10 frames to that from what you see in the Miramax version - faking it, so to speak. For the complete shot, wait for the real cut. =)