If the record was picked up by Dot Records, I would imagine that they would have wanted both sides of the record to be something by Lou alone which would account for the dropping of 'So Blue'.
One day I think it's the greatest idea ever that I'm working on. The next day I think it's the worst that I've ever worked on - and I swing between that a lot. Some days I'm very happy with what I'm doing, and the next day I am desperate - it's not working out!