This topic was the subject of a very long thread over at DVDTalk this week. The consensus from that thread was that Warner and Fox would likely get their heads together on a such a release by the time of Wanrer's 2005 Batman flick (another movie tie-in). One woman said her husband works in marketing at TimeWarner and that negotiations are going on now for it (take that with a grain of salt). Another person said he had interviewed the Senior VP of Marketing for Fox who said legal issues were holding it up. (There was another persistant poster who insisted the show would never see the light of day because Warner hates it.)
I personally see the business logic behind getting Season 1 out by next May or June in anticipation of the new movie, and following with Season 2 later that summer/fall, as it contains the famous Batman/Green Hornet episodes, and Kevin Smith's Green Hornet is due to hit around August 2005.
Now this is a show that I would buy on DVD! And, with the cliffhanger episodes, its perfect for the medium! Isn't everyone on the same Bat-Frequency here?
I don't typically buy TV shows on DVD (the only ones I have so far are the first seasons of Barney Miller and Gilligan's Island), but I'd buy Batman in a heartbeat.