Nertsery Rhymes was released several years ago on a laserdisc set called "Cavalcade of Shorts" and it looked pretty dern good there. A truncated version has also been released, less the music and dancing girls bits, on "The Lost Stooges", also released on laserdisc as well as VHS. Again, the colour on that one looked pretty dern good. Further, the version aired on TCM looked pretty dern good and it was completely intact.
Have a gander at these screenshots from a "pretty dern good" version lifted right from a VHS-to-DVD dub of "The Lost Stooges":
Now, a screen grab from the YouTube clip:
Mondo Differentio.
The clip you have on YouTube, there, shows a washed-out and mostly red image, indicative of the many bargain-basement releases of that title formerly on VHS (and there have been a few here in the US as well as Europe!).
What you have there is not a remaster, just a transfer of a VHS recording. It doesn't look as good as what can be found officially and, in some cases, out of print, but the point is, better versions exist.