A disclaimer: I'm too young to have fully appreciated the Street Fighter series (I'm from the tekken generation which starts from the mid-1990s). So I am not as invested in the mythos and characters from the original game series, and I approached this film as a neutral observer. Indeed, I was 4 when this film first came out, so I virtually knew nothing about it.
As a standalone film, this film is great. It is obviously not suppose to be taken seriously and it's definitely watchable. Bison played by Raul Julia is really superb and the character has definitely gone down in my book as one of my favourite movie villains. I'm quite partial to one-liners, and this film is chocked full of them. The fight scenes are pretty good too, and the blantantly obvious repetition of kick punches and other moves is lifted straight from the games, leaving no doubt of its original source material. At the end of the day, I don't know how a film based on a game that revolves around martial arts fighting could have been done any better.
As for the bluray - the picture quality is good and sharp. I can't compare it to the DVD version as I never watched it, but if the untouched deleted scenes are anything to go by, it is a vast improvement. With regards to the extras, there's two deleted scenes, one five minutes making of featurette and some trailers of the film, the street fighter 4 game and of the recent 2005 street fighter film.