Yes he did have that in his office, but it was thier more as a joke than anything, as savy a business man as he was, the bottom line was never the main thought in Jims head,, it was always about the art , and what could be learned from each and every expirement with the medium, and as far as merchandising of the characters, i seem to recall him speaking about this in one of the documntaries from the eighties, and how he was not all that interested in selling the characters on endless items , he thought it was fine for a few items here and thier if a child wanted a red fraggle or a kermit doll, that was fine, but it wasnt the main focus of the company (yes i know thier were many, but no where near the amount of garbage that Dizney has slapped thier icons on)
and i still stand by my feeling that seeing a Taxidermied Pseudo-Kermit sitting in someones house is just creepy, and weird,
i would much rather Disney put thier efforst in to creating some actual content for the muppet library , not just more over priced fodder for the collectors market