You can now watch the Director’s Cut of The Dark Crystal on Youtube thanks to Christopher Orgeron, who was interviewed by Mental Floss here.
He says on Youtube “This is indeed an edit that Jim Henson and Frank Oz made themselves back in late 1981. This is not a “fan edit” and I didn’t change the edit that was seen in the copy of the workprint. This vision is one that Henson and Oz cut together themselves but was never made widely available in a home video capacity. Henson and Oz of 1981 would, and did, approve of this cut enough to show it to test audiences but after negative feedback there were changes to the dialogue. Hopefully that clears things up and I hope the Henson company can appreciate the historical value of having this version available again.”