The reason that happened with V1 was because the LDs were captured onto a Sony DV Cam and then transferred to PC via firewire, rather than directly. V2 was captured through a PC capture card, via the digital out on the LD player, so what you hear is exactly the same as the LD. I've compared them myself by playing the actual LDs and the DVD simultaneously while switching between them and there is no significant quality difference.
Imagine what you could do by taking a colour/gamma corrected DVD, and using the X0 transfer (to fix the SE elements), and one of the DVB captures (to fix certain DVD defects). One day, maybe...
That is a possibility, but the X0 will most likely be the new standard. Your idea seems like it would require more effort and time than any one person could possibly muster.