Saw Bobby and the Midnights in the Stanley Theatre, Pittsburgh in Jan 82---no setlist available from what I can find----I couldn't tell you one tune they played either...but I do remember being pretty blown away by Brent and Billy Cobham. I also recall Bob running off stage between songs, behind his amps and putting something up his nostrils. Musta been an 80s thing I guess.....
but regarding the question, my guess is that Bobby started making serious coin with GD around the same time and just bagged it since it didn't make the huge "pop-star money" he may have been after (especially if that video is any indication of what he was going for at the time).....
I can't really think of any solo/side projects Bob did from 85 to 95. I just looked at the RD setlists and it's kinda errie that he put RD together in April of 95, did 3 West Coast shows at the end of April and beginning of May (the second and third of which he billed the band as "Friends of Montezuma"??), then, played 3 shows in August out east with the fourth show being on the day Jerry died. Maybe he knew he wasn't gonna be able to count on the Dead much longer??
http://www.thecausejams.com
let your life proceed by its own design....