Sometimes you have to wonder if Lucas predicted that within a few years that VHS would be obsolete and thus the unavailability of the OUT would become a reality, at least until he gave into studio pressure in 2006. You have to remember DVD didnt exist yet when the ‘Faces’ sets were released.
DVD was developed around 1995. Lucas must have been at least aware a new optical disc format was coming. I had an odd conversation with a video/music shop employee around 1996, who defended the Laserdisc section being cleared out because DVD was coming.
I’m just surprised he didn’t release the 97SE on DVD when the VHS and Laserdisc versions came out. He kept saying how these were now the “definitive” version of the films, and that would have been the perfect way to cement that. Most likely he wanted the prequels out on the format first, then the OT.