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I can't imagine one of the major paperback houses doing a project like this now, but it is sorely needed.

Looking around, I don't see any major publisher doing the same thing. The closest I can find is the Fantasy Masterworks series from Orion Publishing Group in Britain. Their list contains some of the Ballantine books, as well as some that are newer (including some Jack Vance), but does not include many of the older classics which showed us what fantasy books could be.

In fairness, though, Ballantine published their Adult Fantasy series as kind of a public service. They didn't make a lot of money off most of them, even though people like me bought a copy of most of them.

I'm afraid most of the books are going to have to rely on small publishers who do it for love more than money. Of course, the VIE could decide to expand their scope, or somebody could set up something like them.