No he couldn't, because people were ripping LDs and using those and selling them on ebay. There was a demonstrated pirate market for them, so he probably figured "Hell, I can do THAT," and put out a licensed version of EXACTLY what was on ebay already. It took next to no effort, and it probably let him capture at least some revenue from fans who didn't want to pirate, but would've settled for the LD-rips anyway. Thing is, the LD source material was basically the highest resolution "original" OT version out there for consumers. There was no DVD-resolution equivalent, (or at least not one being widely distributed, if one exists).
In essence, if you bough those LD-rip DVDs, you were only one technological generation behind the then-current version, and many people at the time still had low-def CRT TVs. So, the actual difference was there, yeah, but it was tolerable and anyway, it was better than VHS which was your only other option.
Now we're two technological generations behind, and the difference is magnified by people having higher-end entertainment systems. The net effect is twofold: (1) people are probably less inclined to keep ripping the LDs (or already have the official version thereof) so there's less of a market for further LD rips, and (2) he's managed to skip a generation of technology for the "OOT" films. There is, in essence, no DVD-resolution version of them. Meaning if you want a clear, HD picture, or even a DVD-resolution picture, it's George's way or the highway. You can't even opt for a previous-generation version because there isn't one. Your closest bet is two generations behind (I guess, unless there are fan edits out there that somehow manage to restore the original material without further mucking about with it...IE: Not Adywan-type stuff).
Anything further at this point probably involves SOME kind of effort on his part, and he's pretty clearly shown he has no interest in expending such effort on that project.