There have been no new announcements, rumors, or signs that would make us think Muppet Babies is making its way to DVD anytime soon. As of right now, it does not look like there will Muppet Babies DVD anytime soon.
So to answer your question; is MB coming to DVD? No, not at this point in time, there are no plans to do so now. Sorry
If you do want some MB episodes on DVD try to get your hands on the Muppet Babies
Plush Toys by Betesh Group . Each of the plushes come with a free DVD containing 1 episode from Muppet Babies (so in total that's 6 episodes - and 6 plushes). The episodes that go with each character are as follows:
Gonzo:
Baby Gonzo's video show
Kermit:
Daily Muppet
Piggy:
Hyperactivity Book
Fozzie:
Eight Take Away One Equals Panic
Animal: ?-?-?-?
(Unknown)
Rwolf: ?-?-?-?
(Unknown)
The plushes are not hard to find now, but are not the easiest either. They don't have much, but right now they hold the only commercial DVD releases of Muppet Babies.