I think there's interest, I just think there are many facets to this topic.
First, Digital Leisure is still selling the two most popular laserdisc games. That makes this a touchy area. IIRC, MameDev attempted to contact them to work out a deal like Daphne has, but they declined.
Second, I think I recall reading that there was some disagreement about how detailed the emulation should be.
I also recall being told that all of the known and available LD's were ripped and archived. You're right, bit-rot is a thing and it will kill the existing LD's sooner rather than later, but when I asked about it months ago I was reassured that the bulk of the LD's have already been saved.
RB? Am I off or did I miss anything?