I don't see mention of SQ encoding on my Laserdisc copy either but it is defiantly encoded! My copy does mention that it uses CX noise reduction however.My Pioneer VP-1000 Laserdisc player has an additional connector on the back which outputs the video without dropout compensation (for connection to a PCM audio decoder).
Watching videodiscs thru this output shows how much the video dropout compensator is doing (especially with the DiscoVision titles)
Also, the David Bowie Serious Moonlight Laserdisc doesn't mention SQ encoding (I haven't watched it for quite a while, IIRC, there's a brief mention of surround sound in the credits).
Kirk Bayne