I don't see any point in putting a broadcast copy of the Holiday Special on recordable Blu-ray: the media is more expensive, more complicated to deal with, and there's no real benefit in terms of quality gain (it's 34-year-old TV-to-VHS quality; like you said, you can't polish a turd!). A dual-layer DVD would offer only minimal improvement in bitrate, but would be good if the source material was transferred well. It's just simpler to have the broadcast Special on DVD media, which plays on all DVD and Blu-ray players.
If you search for the KCCI version of the Special out there, there is a DVD of it with full menus...and the KCCI is the best all-around copy currently available. It's actually quite decent. Unless/until something better becomes available, that's the best we've got.
As far as Lucasfilm releasing the Special on BD (or ever releasing it at all), don't hold your breath waiting. However, at least a *portion* of the Special is now on BD: the Boba Fett cartoon is part of the special features on the 6-film boxed set.
--SKot