Sure, this isn'T the best movie ever and this isn't the best "ultimate edition" ever. But:
1) The picture quality is okay. Not great but surely not poor. Don't foget it's (by the time of this release) a 36-year old low budget film shot on 16mm film. It could be better of course (see current Blu-Ray release of TCM - which was also shot with almost no budget oin 16mm film only two years later).
2) The "short film" on disc three is actually longer than the main movie. ;)
3) The alternate cut is the cencored version and belongs the "lots of extras" to what you called "a good point" - so how can it be bad???
Bottom line is: There's been no better realease so far in the world.