Haven't been to these boards in a while so the "Muppet Babies" section is new to me, but I don't think we'll be seeing "Muppet Babies" in season sets on DVD anytime soon.
Basically, it comes down to rights issues...They used so many movie and TV clips (as well as the occasional bits of music videos and news footage) that they would be paying practically every studio under the sun for rights to use the clips.
Also, another potential hold-up is the extensive usage of "Star Wars" trilogy clips. Let's bear in mind that Lucas isn't a fan of the older versions (when Han Solo shot first and the like) and if we won't be getting them on DVD, why would we get clips of them in season sets?
My prediction...If it does come to DVD, prepare for heavy-duty editing.
Sincerely,
John "manoftheSTREET" Kilduff