There might be a few too many fees involved with getting the All Star jam released in its entirety.
To put something like that out, it would probably be costly, yes.
You have to get a synchronization license (that's permission to put video to audio) for EACH song. And synchronization licenses are WAY more expensive than audio (mechanical licenses).
With audio it is usually easy enough - you just hop on Harry Fox Agency’s website and most songs you can think of are there. You just pay the fee (it's by the number of copies you'll be producing and the length of the song) and that's usually it.
With video, you typically have to contact the publisher (which means you have to find out who that is first). Many times you can just deal with them and they can make the arrangements. However, certain artists are picky about who covers their material, and may require the publisher’s management to come to them for permission (assuming they still own the publishing rights). Some may even want to hear/see the footage. If they don't give permission, you can't do it. Period. If you do get permission, you have to fill out a lengthy form for each song (and again, it can be very expensive). You have to do this for each song (and there will be more than one publisher to deal with having so many songs).
So if a DVD like this was planned, it would be possible that not all the songs would be on it even if you wanted them there. It also may be that the total cost for fees, licenses, duplication, etc. would be so high that it isn’t cost feasible given the demand...
Glenn mentioned that Center Stage pays the fees for cover songs but I think it'd have to come out of his pocket to get the permission for a DVD.
Yep, that is a different fee. Live venues typically pay ASCAP and BMI so that covers can be performed there. If you've ever been in a band, you've probably run into a situation where you played a certain place and they told you "no BMI songs!" or even "no cover songs!".