The original Sony releases looked a lot like VHS too. Let's not forget that the show was created on tape in the first place. I can't detect much of a drop in quality in the newer Mill Creek sets... It's still very watchable, and in a strange way adds to the overall charm of the show.
Yes they are normally very quick to reply. I emailed them a while ago to complain about a defective copy of "Charlie's Angels" Season 1, and although they couldn't help, they at least acknowledged my email very quickly.
I'm actually not sure. I did own the Sony sets for Season 1 & 2, but sold those a while back, and I currently have the Mill Creek sets; but apart from the first episode of Season 3 being included at the end of the Season 2 set, I can't detect a difference.
Here is that bittersweet last meeting for Benson and Jessica... at least they tried to clear up the shoddy way things were left in "Soap"'s final episode...