Although cartoons were often re-shown in movie theaters, I can pretty much guarantee that "Dizzy Red Riding-Hood" was not seen after about mid-1934. That's because a very tough Production Code was enacted to make films more family-friendly. There were now LOTS of taboos and occasionally, older films were edited to 'clean them up' so they could gain approval in the US. However, I really can't see how they could have sanitized this particular cartoon as it has many things that were objectionable according to the new Code. There is a joke about homosexuality involving pansies that clearly would have been eliminated, as homosexuals were NOT to be in the Post-Code era. There also is a scene where Bimbo the dog grabs Betty by her breasts—and that would actually probably not be in films today since it was a cartoon intended for kids--ditto for the scene with Betty and Bimbo in bed together near the end of the film. The bottom line is that things were NOT as boring and sexless in the 'good old days' as most folks imagine today. Even cartoons could be a bit smutty, though the objectionable material is far tamer than what kids are exposed to on television today that are not cartoons!
So is it worth seeing? Sure. The animation (as usual) is great and the anthropomorphic creatures and house are wonderful to see. Also, I do find it fascinating and enjoyable to watch many of the Pre-Code films, as they are a wonderful window into the past and are occasionally quite shocking.