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You're right. Film is a medium that really takes effort to preserve and make available in a quality presentation. There should be protection for those who preserve and restore public domain film material (theatrical and television). Unfortunately, there is not enough money in it for Hollywood...

Universal said that they didn't lose original elements, just a lot of transfers. I think the thought is that if Universal would have to do new transfers to release something on DVD (especially an old tv title without a huge demand), Universal won't do it, and it will never be released.