I have a set with 64 of the 101 episodes from Nostalgia Merchant (not sure if they're connected to the Nostalgia Merchant from years ago that released a lot of classic titles, many RKO titles, on VHS). They're not too bad, however the audio is somewhat muffled at times on some of the episodes...
Yes. A tough call as those were the only 2 options. I have many of those shows too in the same format from 16mm or TV recordings mostly uncut. Better than nothing.
The music may not have been pertinent to the storylines, but I think most people would prefer unedited episodes, rather than something with missing scenes. Personally, I think the music parts just added to the enjoyment of the shows.