Indeed these are the end times.....
Bill Lustig is an awesome guy and I got to meet him in person when I caught a double feature of "Maniac Cop" and "Maniac Cop 2" a couple of years back. It really sucks to hear that BU may be going under. Sad to see a company that puts so much into their releases get the shaft.
As for pricing, look at Criterion and Synapse's prices for their releases. They put out some crazy, high quality stuff, and their prices are usually fairly expensive. It's what smaller companies have to do to keep afloat.