Little OCD correction - LTS was a TV special, not a movie - it runs a little less than 60 minutes.
Anyhow, I've always looked at LTS a little bit differently. At the time it came out, the Muppets were just starting to make a bit of a comeback, after a lengthy period of being in rather weak productions with material not really suited for them, followed by a lengthier period of next to nothing (at least it felt that way at the time).
Those Studio DC specials came out in the Summer of '08, and were a nice way of reintroducing the Muppets to the Disney Channel crowd. But they weren't really made for us fans. Web shorts started popping up online soon after - though admittedly, I didn't get a chance to see a lot of those during their initial release.
In comes LTS, which I felt was a step back in the right direction. It wasn't perfect, by any means. Especially when compared to later projects. But given what the Muppets had been doing in the previous year, it felt like a breath of fresh air at the time. The Muppets weren't being forced to emulate the Simpsons' humor, nor did they have the share the spotlight with marketing ploys/starlets. For me, it felt like they were doing Muppety things again.