Actually what they did give us is substantially better than a laserdisc rip. I am sure you know they went to the laserdisc master for their O-OT transfer.
I do agree it would be better if it had been anamorphic but at least Lucas did release it on DVD.
Personally I think this is the best the O-OT has looked on home video so far, not counting the 2004 SE version.
I did see one of the Phantom Edits, but I didn't think it was all that good. It was the one that didn't alter Jar-Jar's dialogue. For some reason they cut out some of the more important scenes, and left in some of the more annoying bits with Jar-Jar.
Personally I loved Jar-Jar, but I figured the first priority for making a fan edit like this was to get rid of as much Jar-Jar stuff as possible.
I don't think that was the Magnoliafan edit though.