I've heard it isn't THAT bad - it's more like, considering all the A+ films from Ghibli - this film, which is more of a B range - is being treated like a total F-.
But considered on its own, apart from the Ghibli legacy, it's not so horrendous.
I'm hoping that the US release might spark a Blu-Ray. I still have my DVD from 2006. And this is one of my favourite Ghibli films, I saw this back in 2006 at the local Picturehouse and fell in love with it. The 'Teru no Uta' scene is just spectacular, as is the animation throughout.