Luke
The trouble I see, and as your review so easily pointed out, very few people have seen America's Heart and Soul (including myself, so I can't necessarily make a judgement on the film). Disney has done itself no favors with this particular film-it was released during the Spiderman 2-Fahrenheit 9/11 double whammy 4th of July weekend this summer, meaning at best it was a second or third choice for most movie-goers and now this limited DVD distribution. Is Disney deliberately trying to lose money on this film?

Of course America's Heart and Soul wasn't the only film to get buried by the Spidey 2/Fahrenheit juggernaut-one of my favorite films from 2004-Two Brothers also came out at this time and did very little business, which I thought was quite a shame.

However, I would assume that Universal will release the Two Brothers DVD to all retailers when it comes out, since it would not want to miss out on any sales.
I don't think either America's Heart and Soul or Two Brothers would ever match the DVD sales of a Spiderman 2 or a Fahrenheit 9/11, but by limiting the distribution-and no rental copies available at Blockbuster,etc.-Disney is setting itself up for failure.