I always pronounced it 'SIGH-klee-uh'. No idea if that's correct.
As far as releasing stuff, aside from the profit margin, I can see a couple of issues.
First, there's the editing. IIRC, Cyclia was a dance club, not a film, and the video was random footage to be projected on the walls (or on screens hung about the room) & coordinated with the music. Trying to translate an unrealized multimedia-immersion experience into a DVD clip would be...a bit of a challenge.
Second, the raw footage may not be in great shape. I would hope that the film has been kept in a good environment, but who knows? Even under the best of conditions, film decays, and different films decay at different rates & under different circumstances. There's stuff from the 60's & 70's that's falling apart, and stuff from the 20's 30's that's as brilliant & colorful as the day it was shot. (I have friends who are film archivists, specializing in regional, small gauge, and television media. Neat stuff, for a media geek like me.)
FYI, I do know that the Henson Company was looking for an intern last fall to help them sort through their archives. We may yet see some of this stuff. I hope so. I'd love to see the raw footage, and maybe a few samples of footage edited with sound.
ta,
wombat