It has to be said, the letters idea is the most pointless idea ive heard in a long time. They would have been better off including doozer sticks to put together to build little constructions from. I doubt any Fraggle fan wants the letters and they oughta just ditch that bit at toy fair and bring the price point down a buck or something - they'd likely make a few more sales.
I agree totally about having a premium option to buy the complete sets, big money to be made there. These do have a lot of potential to sell, maybe even more than Muppets in the comic shops as Fraggle does seem to be very well remembered amongst the casual fans, especially at the moment.