From a report in Variety at the time it was explained that since Peters had left WOODS after only a brief run (maybe 5 months) there had been a mutual agreement that her name would not be submitted and that Joanna Gleason would be entered as the leading (above the title) actress nominee for WOODS. It was never a snub, although several writers at the time suggested that had Peters stayed with the show longer she would have been a contender. Peters gave a great performance and attracted a lot of attention when the show was in its early weeks.
INTO THE WOODS was never a sell-out but it did strong business while Peters was in it. It tapered some when she left and Variety deemed teh show's box-office as "nervous." After teh Tony Awards (with Phylicia Rashad as the new Witch) business picked up over the summer of 1988 and was strong (but not capacity) through the following summer as well.
The producers of WOODS felt that Gleason's well-received performance had a good chance of winning, and hoped that her being the only nominee representing WOODS in the category might give them a good chance at the award. Apparently,. they were right.
Lupone's ANYTHING GOES performance was highly controversial at the time, many feeling she was too "tough" in the role and her diction was either poor or hampered by the theatre's sound system. (Check out the FORBIDDEN BROADWAY parody..."I Get a Kick out of ME.")
Cast albums are NOT "soundtracks."
Live theatre does not use a "soundtrack." If it did, it wouldn't be live theatre!
I host a weekly one-hour radio program featuring cast album selections as well as songs by cabaret, jazz and theatre artists. The program, FRONT ROW CENTRE is heard Sundays 9 to 10 am and also Saturdays from 8 to 9 am (eastern times) on www.proudfm.com