Since Southern died in 1995, I’d guess his mind was in even worse shape in 1996 than in the 1970s. 
Heh. Okay, the interview was copyrighted 1996. But it actually occurred at Southern’s Connecticut home and by mail in 1993-94. Backstory 3
And no unmerited expectations at all, lol. Perhaps she should have used the money she spent on implants for her tuition instead.
The serious response is that one’s memories don’t magically reappear when one sobers up. Southern’s memories of the 1970s were forever scrambled. He may sincerely have meant what he said, but since we know he got the facts wrong the rest of his comments are also tainted. He undoubtedly wrote a draft. Whether anybody at the studio gave it serious consideration will never be known. I don’t believe it for a second. 1975 was already turning away from the edgy films of just a few years earlier. Culley had just become president of Warners in that year. The first thing he would have done is ***not ***make Blue Movie. Not. Under any circumstances.
Julie Andews was a teen star, performing from the age of 10, famous at 12. Highly unlikely.