Very sad news! Media Blasters drew heavy criticism a few years ago for releasing some werewolf movie with the image cropped, removing some lady's privates.
However, I own several SS releases that I'm very fond of - The Dark Just Before Dawn (would like uncut, though), All the Colours of the Dark, Seven Blood-stained Orchids - and that I would gladly buy on blu. I was delighted to see MB tapping into the blu-ray market, so this is a big disappointment for me... The Shriek Show line always struck me as a labour of love, with generally very well put together releases.