If this gets resolved with "We'll let you release Watchmen if you let us release Batman on DVD", that's a win/win in my book, and Fox might actually be forgiven their trespasses on the comics community.
Bear in mind the source -- this is an unattributed wiki comment about a rumor. I'm not even sure if there are rights issues with Digital Distribution of Dozier's Dynamic Duo: the Movie based on the series has been out in several editions over the years.