There are a few reasons, I think, why B5 didn't really go anywhere.
1. Screwups with filming. The F/X shots are, unfortunately, never, ever going to improve. If anything, they'll look worse and worse over time. That's because, while the show was shot in HD, the F/X shots were never preserved in HD format. Only in SD. Meaning that, when you see a CG shot of a ship with a window through which our characters are talking, that shot will ALWAYS look like crap, because the only material we have is the SD combined shot. There are no HD elements. This means that basically selling the show on any format other than DVD is pretty much impossible because there's no effective way to upscale to modern resolutions. So, right there, you're cutting off the franchise at the knees, because you have no way to push the main show after the DVD era.
In case any one is curious as to what happened and why.
https://en.wikipedia.org/wiki/Babylon_5
"While the series was in pre-production, studios were looking at ways for their existing shows to make the transition from the then-standard
4:3 aspect ratio to the
widescreen formats that would accompany the next generation of televisions. After visiting
Warner Bros., who were stretching the
horizontal interval for an episode of
Lois & Clark, producer John Copeland convinced them to allow
Babylon 5 to be shot on
Super 35mm film stock. "The idea being that we would
telecine to 4:3 for the original broadcast of the series. But what it also gave us was a negative that had been shot for the new 16×9 widescreen-format televisions that we knew were on the horizon."
[113]The widescreen conversion thing was executive short sightedness at its finest!!! We offered to do ALL of
Babylon 5 in widescreen mode if Warner Bros would buy us a reference monitor so we could check our output. (only $5000 at the time) Ken Parkes (the "Business affairs" guy) and Netter (penny wise, but pound foolish) said no! So we did everything so it could be CROPPED to be widescreen! Each blamed the other by the way. Doug Netter said, "Ken Parkes said no". Ken Parkes said, "Doug Netter said no". SHEESH!!! So for $75 an episode they could have had AWESOME near Hi-Def.
— Ron Thornton, 2008
[114]
Though the CGI scenes, and those containing live action combined with digital elements, could have been created in a suitable widescreen format, a cost-saving decision was taken to produce them in the 4:3 aspect ratio. The intention was to then
crop the top and bottom of the images, and
upscale the resolution for any future widescreen release or broadcast. In 2000, when the show was transferred to widescreen for airing on the
Sci-Fi Channel prior to its eventual DVD release, the plan was not followed, as John Copeland recalls: "They did another video hack, and simply used a digital post production device like a DVE (Digital Video Effects) to blow the material up. They essentially stretched it approximately 1/3 to fill the larger aspect ratio."
[113]
The scenes containing live action ready to be
composited with
matte paintings,
CGI animation, etc., were delivered on tape already telecined to the 4:3 aspect-ratio, and contained a high level of
grain, which resulted in further
image noise being present when enlarged and stretched for widescreen.
[115] For the purely live-action scenes, rather than using the film negatives, "Warners had even forgotten that they had those. They used
PAL versions and converted them to
NTSC for the US market. They actually didn't go back and retransfer the shows."
[116]
With the resulting
aliasing, and the
progressive scan transfer of the video to DVD, this has created a number of visual flaws throughout the widescreen release. In particular, quality has been noted to drop significantly in composite shots"
I knew I should have grabbed the master tapes and B5 art work when Netter Digtal was going down :/
Wonder where all that stuff is now?