Yeah, having dealt with Full Moon Pictures (now formerly known as Shadow Entertainment), I know the background story to why the DVD is discontinued, but due to the circumstances surrounding it, all I can say is due to Paramount formerly distributing the Full Moon features (from 1989 to 1995), they discontinued the DVD as Full Moon released without Paramount permission.
I am not sure if the DVD is the unrated edition or not, as I have only seen the R rated tape. I did not notice a difference, but it has been too long of a time span in between viewing both. Full Moon has been tricky in the past however. The DVD version of CASTLE FREAK that was available before the DEATHBED double feature included the unrated cut, but was however advertised as the R rated edition.