LOL--when I saw the title of this thread I thought it would be referring to the sketch where Don Music trying to write what the audience knows to be the Sesame Street theme song, but with Kermit's help ends up changing it into something else. It's a strange because it's at night, and for some reason Kermit's there, in his reporter's outfit, even holding his microphone, but he never addresses the audience as if it were a news report. Apparantly he's just hanging out at Don's house for the heck of it. In his reporter's outfit. With his microphone.
Right. People do that.
Incidentally, on the subject of Kermit's house, my imaginary history is that one Mr. Kermit D. Frog, struggling young actor, moved from the swamp to New York City in the mid-60s, and with his friend Rowlf the Dog, found a cheap apartment on Sesame Street. (I base this on Rowlf appearing in that promo and in the "9" Baker sketch) The two shared the apartment for a couple of years until Rowlf got some piano gig and moved out because the commute would have been too much. Kermit stayed where he was, eventually starting up the Muppet Theater and assembling his whole motley troupe, and scraping by with various gigs over the years. (The Muppet Theater is somewhere in NYC, but that doesn't make Kermit's commute easy, since even people who live on Sesame Street can never easily find their way back home. Thus the eternal question.
)
In the Frog's mind, he's still a struggling actor and businessman always on the verge of bankruptcy, and the considerable success he's had in his career never really occurs to him.
Whether Kermit finally moved away from Sesame Street, or if he still does live there and we just don't happen to run into him lately, I'll let someone else weigh in on.