This is a link to a recent article regarding the possible re-release of SOTS.
http://www.mickeynews.com/News/DisplayPressRelease.asp_Q_id_E_357South
It basically says "Don't hold your breath. It's NEVER going to happen".
That article ("Why Disney won't re-release 'Song of the South'", by EARL SWIFT, The Virginian-Pilot, 3/5/2007) does a great job explaining my some people find the 1946 feature "Song of the South" objectionable.
But this article is out-of-date in one regard. The article from March 5, 2007, mentions Robert Iger's remarks at the 2006 Disney annual meeting. But a few days after the article was published, on March 8, 2007, Disney held their 2007 annual meeting. This time (as raidermatt noted), in response to a question, Robert Iger suggested he is reconsidering his earlier, absolute opposition to releasing "Song of the South" on DVD.
I would much rather see Disney release a definitive version of "Song of the South," which would include discussion of the film's merits and flaws, than for "Song of the South" to be available only on bootleg DVDs (which are now widely available and easy to buy).
Viewers -- whether they are adults or children, serious animation buffs or simply seekers of entertainment -- will get more out of the film if they understand more about the period in which the story takes place, more about the period in which the movie was made, and can hear intelligent discussion about why the film makes many people cringe, despite no racist intent (and, in fact, despite a genuine effort to show African Americans in positive roles).
Obviously, not everyone would choose to watch such "bonus material," but it would be there for anyone who wants to see it. And if it's well done, I think most people will choose to see it.
In comparison, the bootleg DVDs contain no such interpretive material. In fact, they're packaged to look like the Disney DVDs that people use as electronic babysitters for their children. "Song of the South" should be a Disney Treasure release (or something along those lines). It should be uncut, uncensored, and properly restored.
The other advantage of a DVD release by Disney is that if people are going to see "Song of the South," they should see a properly restored version, with the best possible picture and sound quality. The film is a work of art, with wonderful character animation and merging of animation and live action that far exceeded anything that had been done previously.