The thing about Benny is that the character was clearly designed as part of the 1993 restructuring of SS, which happened out of the necessity of filling in gaps left by people who were no longer there, as well as trying to squeeze themselves into a spotlight being taken up by new kid's programs. I feel it has some parallels to what Muppets Tonight did, filling in blanks left by characters that weren't yet recast or retired, or the writers couldn't use anymore. And much like MT, there were characters with staying potential, and characters that were used a few times, and then tossed.
I really hoped Benny would be the former... but then again, remember who plays Benny, and what he does on the show.... Honestly, I wonder if Kevin even has time to perform Elmo, much less any other character... there's a reason he earns the big bucks. Deep down, I like how Benny was sort of like Oscar. A character in a kid's show, surrounded by cuddly, happy characters who really seems to resent it. Something that makes SS all the more more believable, since not everyone can be a happy ray of sunshine. Benny hated being touched, and hated being a creature that's commonly linked to cute and cuddly (Hey fan fic writers.... he's the perfect character to use in a Tiny Toons/Sesame Street crossover.... can't you picture him with Elmyra?)
Plus, I love the goony looking design they picked out for him.