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The D1 master tapes are digital, not analogue. They have higher color resolution than DVD and equal pixel resolution to DVD. They will reproduce better on a modern digital video format like DVD than they did on VHS or Laserdisc. They will be no more prone to compression artifacts (which are inherent to the DVD format) than any other DVD transfer (in fact, compression artifacts will likely be less than they would be on an anamorphic DVD, which would contain more picture information and thus require more compression).
If that ends up being the truth, then I will certainly buy a copy. Otherwise I do not see how or why Lucasfilm could have botched their public relations so badly. They should have simply said they were going to use an older digital master that will allow a transfer at top DVD quality. Instead, they go on about "Laserdiscs" (which have horrible resolution next to DVDs) and otudated video technology to upset everyone.
"Now all Lucas has to do is make a cgi version of himself. It will be better than the original and fit his original vision." - skyjedi2005