Its just that to me, the difference between the DVD and the laserdisc is SO drastic, that blending the two, you end up with something that is much much further away from the original trilogy 'preservation' than the straight laserdiscs currently are.
I agree that the original edit is the important thing, but to hash the two together looks so bad, that the only way to make it look not obsecene is to dumb down the DVD footage so that it is closer to the awful quality of the laserdisc. Its more than a few seconds, I calculated 14 minutes of changes - that's quite a bit. I did a quick run at this when the DVD came out, and the inserts are so jarring that it totally spoils the experience of watching the film.
If you want a less offensive version of the film, while retaining the quality of the DVD transfer, then just plain scene removal, and recreating other scenes using elements the DVD source footage to exactly match the laserdisc footage where possible would be your best bet. will work for a lot of it, except for Jedi, which personally I think is a lost cause. ESB is an easy one though.
I agree that the 97SE Jabba scen is way better than the 04 one, what's up with that (Though I detest both scenes), I still think its a botch job in animation though, looks like it was done in truespace lol.