I'm afraid I'm going to have to disagree with you,I think the flashback makes the film even better,I find it quite moving couopled with Morricone's theme.
I own two VHS versions of this.The first,which I must have bought about 12 or 13 years ago,DOES have the flashback in.The second,which I bought later on and was a widescreen/remastered version,does not.It was in Channel 4's version but not in BBC2's.It seems that older releases of the movie have the scene and more recent ones don't.
I totally agree with you. This flashback has to be in a version which should be something close to a director's cut (the real director's cut would be 270 minutes!). There are two reasons:
1) Leone himself talked about the 227-minutes version when he promoted the film in Europe. And this version contains the flashback. I saw it myself.
2) The whole final scene is much better with the flashback included. The emotional impact is much deeper.
So I really hope the inserted the scene back in. But I doubt it: In the 226-minutes laserdisc it was missing...