My guess would be that it boils down to "Gee, Blair Witch really was a flash in the pan". All of their "mainstream" films have totally bombed since. Company's up for sale, so frankly I'm guessing they're spending as little money as possible
They did the same thing with 'The Long Walk Home', a title that I was looking forward to. I didn't keep it, as it was ruined in its cropped format.
They also did it with 'The Last Seduction'. It wasn't so serious in that one, as the film was shot with an open matte, so no information was actually lost from the sides. (Although Artisan probably didn't even realise that.)
I really hope the company sells to a responsible studio, as perhaps then we can get THE QUIET MAN the way we should have had it years ago, as well as many other titles.