Sadly, yes, that is indeed the DVD cover. And it's hideous.
Regarding an extended cut: I hope we get one, because you can really tell that they cut a bunch of stuff. This hurt the movie quite a bit, but I still enjoyed it.
You can blame Joel Schumacher (I don't know how to spell his last name, and frankly, I don't care what the spelling is) for Batman and Robin sucking. As seen in the Star Trek vs. Star Wars battle on Robot Chicken, a nerd dressed up as either Batman or Robin calls him "history's greatest monster".