I think audio dramas are a natural fit for Doctor Who, considering how many of the missing episodes survive only through audio. Of course, I am for the animation of the missing episodes, since they were also intended to be seen as well as be heard... But even so, what Big Finish do is rather remarkable on its own, and in no way is of lesser quality by any means to many, many episodes - in fact, I'd say a lot of them, especially from the Eighth's range are better than a lot of the televised Doctor Who. And I am perfectly contend with the Lost Series actually being audio dramas as is, because they at least got made with the many of the principal actors.
And really, a Forrest Gump, Star Trek TOS-DS9-like creative editing would've been way too impossible to do, even as late as the late '90's. Hell, even the new show didn't attempt it, and it had a much higher budget, until this last season, quite extensively so with The Name of the Doctor. I doubt that very highly, but whatever - question that remains is, does he have any of the principal actors working in there?
From your post, of which I am grateful for, it looks to me as if Levine wants to gain profit from the ventures, because while he's handling copyrighted material, he could still distribute it for no cost, and with proof of whoever wishes to obtain the given re-edited product to have purchased an official copy beforehand. That way, he can serve the fandom and BBC-2|entertain. Otherwise, if he REALLY wanted to distribute his stuff legally, why not inform BBC-2|entertain beforehand, and secure a deal that would make everyone happy?
Anyway... so, to re-iterate: He's re-edited Downtime with newly filmed Sylvester McCoy-as-the-Doctor footage, completed Shada (yeah, I checked that story), inexplicably done-or-will-do some of Colin Baker's audio dramas from Big Finish into animated episodes, and made an animated special based on Terrance Dicks' The Eight Doctors.
Hm... Sounds to me, with all that resource, he should've cut a deal with the BBC to head the animation of the completely-missing serials of Doctor Who, particularly Marco Polo and The Power of the Daleks... But from what I've read, he's burned many bridges, hasn't he?