Well, I got the DVD today. It has a number of Sesame Street News segments, which I'm not surprised by. There's three in the main program and the "Cinderella's Fairy Godmother" bonus segment. Two of the segments are repeats from previous DVD releases while the other two are not only new-to-DVD but are also not currently available on sesamestreet.org, Sesame Workshop's YouTube channel, or Hulu.
While the Sleeping Beauty is the one with the prince falling asleep that's been on two other releases, this release actually includes the original title card instead of the late-1980s News Flash card. This is the third release of that segment, which has had three video releases in five years. Hopefully the next time it's released, it's in a video release of an episode that included that segment (or, and this is probably less likely, a video collection attempting to include every Sesame Street News segment on DVD, if not a collection that attempts to get every Kermit segment on DVD).
I have no way of knowing for sure, but I'm convinced that they put the wrong Sleeping Beauty segment in. Pretty much every insert included has something to do with the previous or following street scene, and the other Sleeping Beauty would make more sense to follow the episode with Abby thinking Oscar is a prince (and that Sleeping Beauty segment is shown after this episode). In fact a different News Flash segment with the same punchline is shown before the Prince Grouchy story.
I figured this would have quite a few News Flash segments. I'm a little surprised that they didn't work Kermit into the packaging like they did with Silly Storytime, since both have quite a bit of Kermit and Henry Louis Mitchell said that he felt it was important to put Kermit on the Silly Storytime cover. Maybe they didn't want to go through that trouble again, or maybe they did ask Disney but got a no this time. Though I think when he talked about aquiring permission on The MuppetCast he said that before Disney was convinced they said that Sesame Workshop could use any existing photos they had but they didn't have any of the right quality (I feel an existing Kermit photo could have been on the storybook covers that appear in either video cover). But the packaging doesn't even acknowledge the heavy amount of News segments (aside from listing "Kermit News" among the bonus features).
And isn't it interesting how they seem to do fairy tale-themed releases around the time that a new Muppet movie is to be released? Silly Storytime was released the same year as The Muppets, and now Fairytale Fun is released a few months before Muppets Most Wanted.
There's also another 1970s segment included which I don't ever remember seeing (though I'm sure I've seen a picture from it at Muppet Wiki).