In fairness to Katzman and Lorimar, by the late 80s, most US filmed TV shows were being edited on video (though the Lorimar shows edited on video looked worse than their peers from other studios). The TV series ”Fame” pioneered this method in the early 80s as a way to save money when the show moved from NBC to first-run syndication. But everyone else quickly got on the bandwagon. It was short sighted, because it made it so much more expensive to upgrade those episodes to HD later on. They have to go back to the original film elements and reconstruct the episodes, unlike the shows edited on film, where they can just rescan the final print.
Paramount had to go through all kinds of expense to reconstruct the later episodes of Cheers (the earlier seasons were edited on film) and all episodes of “Star Trek: The Next Generation.” The latter had disappointing sales on Blu Ray, so Paramount hasn’t shelled out to upgrade the other 1990s Star Trek series, which can only been seen in SD.
”Murder She Wrote” was a holdout, and was the last US series to be edited on film in 1996.