Personally, I enjoyed this DVD, especially the rare Melies color films. A joy to watch. Also his very early film with his four heads talking on a table. The color tinted films are quite delightful too.
As for the narration, Melies granddaughter (whose voice you hear) made it clear that in the days before titles were used in silents, people like Melies verbally narrated the action in such films to their audiences. Gives you a kind of "you are there" feel.
But in either case, lovers of Disney and fantasy films in general should flock to this, as Meleis was the grand master who strarted it all. Great to watch with kids too (aside from the hanging scene in "Blue Beard").