I remember the color being really nice on the 1997 Jedi and empire. It is sad that neither of the originals got a Technicolor print. But they could still be done if the labs existed.

There was a short revival of technicolor in the 1990's being used in restorations. But not necessarily new technicolor prints made. As far as i know there were none.

The seperation masters should be still good as far as i know for a new release.

Lucas just wants digital versions out there, even the new 3-D will probably be the newfangled fake imax with no film.