To be fair, Jim Henson did make all of those kiddie vids with Fozzie, Rowlf and Kermit in the late 80s. I was upset how he caved and did that. It helps to feed the confusion. That's what Sesame and Muppet Babies are for.
I like my Muppet Show characters edgy (without going too far, of course), but some fans would like to seal them in a time capsule to keep them as they are. They need to grow (some) to be relevant.
I would call some of the rarely seen Land of Gorch Muppet skits pretty close to "going to far"
I absolutely loved the 80's Muppet period, it was a magical time and I liked everything that came out Muppet wise from then. Jim Henson Hour being my favorite, but as well Muppet Family Christmas, Muppet Babies, Fraggle Rock, Sesame Street specials, etc.
Clearly the backbone of the Muppets and Jim Henson legacy is pretty avant garde art installations, short films, whacked out tv commercials, existential concepts, etc; but I believe Jim's ultimate vision was to have a dualistic
layer of promoting peace and laughter, with entertainment. I think this can perfectly be mixed with children's entertainment, such as Fraggle Rock.
The problem with Fraggle Rock, is that hardly anyone saw it on America since it was on HBO. That was a major blunder by JHC, as it shoulda been on CBS or PBS. The children it was partially meant for never got a chance to see it.
And now we see how there is "disclaimers" on Old School Sesame merely because the underlying social subtexts implied or alluded to are "not fitting" with the kids of today. That's how far we've regressed.