Sets a bad precedent. This scene is not on the new UHD and BD releases.
I don't understand their logic. Seinfeld has an episode where George and Jerry check out a 15 year old's cleavage and then try to justify it to Elaine. Would that fly on a TV show made now? Hell no. Are people bothered that it's on the DVD? No. Nobody cares. Nobody would have cared about this Toy Story scene. All they did by taking it out is upset some fans.