Seems like a pretty minor issue to me. But then, I've never been as obsessed with the "whole image" thing like others here.
If we're talking about a Stanley Kubrick movie, where every shot is a carefully composed work of art, then of course. But not an episode of TNG.
It only really becomes an issue with people who have an HDTV with more than 5% overscan. For instance, on my bedroom HDTV, some of the credits in "Sins" sit right at the bottom of the frame and the very top of heads are slightly chopped off even in wide shots! In other words, the head room is gone. Definitely not the intended framing. This is why filmmakers shoot with these tolerances and safe areas in mind. Not every TV is the same. Not every projectionist is on the ball.
I'm really more puzzled than anything. Why are the pilot and "Inner Light" pretty much the same as the DVD, giving us a bit more image in most cases and this episode rather severely cropped? Either the episode was telecined incorrectly back in 1990, or today in 2011. Only one can be correct and I'm just wondering which one.
I figured this was kind of a fast moving production line and everything would be done consistently for the most part.