Yeah, the whole thing with covers is that, unless it's done almost the exact way, or the singer is exceptionally good at making it his own, you won't please the people who like the original in the first place. YET, this was done in the upmost respect, and I don't see how any artist can say that they wouldn't want their songs to be done by the Muppets or somebody else because I think that is the highest form of, not only flattery, but also means that your song is so great and has such an impact on a certain genre, that somebody wants to recreate it in their own way. I think there could BE no higher praise for an artist. Look at Weird Al Yankovic. There are artist that say that they haven't felt like they made it in the industry til Weird Al did a parody of their songs because that's how you feel like you've hit the main stream is that somebody thinks enough of your stuff that they wanna either parody it or cover it. I think Freddy won't be turning in his grave, I think he'd be laughing and clapping(if he had the muscle power to do so, and since he has no power to do either since he's DEAD, oh sorry, spoiler alert, I very much doube that he would) at this because it is a testament to how much his music and this song meant to pop culture that people are remembering it, and actually commenting on how great it was, and also using it for parody and for cover use.
Daniel