Happytime Murders is the EXACT movie they SHOULD be working on. Something low key, something that they can get as much indie support as possible... something that will no doubt have simplistic puppets that they could even recycle... something that won't be expensive and get lost in the shuffle of a major movie season. Just something to say "WE EXIST!" in big bold letters without saying, we have yet another big project we need to get 90 studios on board to co-produce. That's why the Fraggle Movie's dead in the water... even if Weinstoopit were to give them the okay, they still need several partners to get in on it.
Seriously... ONE thing at a time. Dinotrain is amazing, but it shouldn't be their staple franchise.