Drtooth: I agree with most of what you said. You have a history of pinpointing these things more directly than the rest of us, I've come to notice.
They've always been guided by research, but now they're starting to take on the same burdens, ironically, that public schools have dumped in their laps by too many parents and pretty much every politician in the country.
The new heavy-handedness----reflected in everything from the writing to the way longtime cast members like Sonia Manzano have changed their styles of delivery---is probably an inevitable result of those new curriculum guidelines, the tone of the preschool competition, and the same age-downward demographic shift that led to Elmo's World being created.
You also mentioned the problems with funding. One question that's bugged me for a while is that I've never understood how or why their funding depleted so much so fast in the late '90s. They went from their usual yearly 130 hours in 1997 to 26 hours in just four years. And that directly coincided both with a sudden increase in private sponsorship (McDonalds', Discovery Zone---remember how Ralph Nader raised concerns about that at the time?-----Cheerios, etc.) and the return of the Corporation for Public Broadcasting to the donor list. What exactly happened? I know that Congress slashed PBS funding significantly in the mid 90s, so I suppose there was a delayed effect of several years and even the combined funds from both CPB and private companies wasn't enough to make up the difference? I also wonder why Ford and Carnegie dropped out of the game after the 1994-95 season (incidentally, almost exactly the same time as the cuts), since they'd been there from day one.
It's true that the Muppet skits still are often funny. And the newer cast members are fun. Chris in particular fits in so well that it almost feels to me like he was always there all along.
And yeah, the Spider-Monster skit was GREAT. (I'm so glad it was Oz doing Grover there. He just elevates everything. He always has.)
I do stand by my opinion, though, that generally the show is less unique and more generic than it once was. It's mostly, I feel, all the competition you mentioned----in general the tone of much preschool media is generic and vanilla by design. I assume it's because young children are thought to process/digest things best that way. And it may be true. It probably is true. But it's still regrettable. Because I feel that if the Sesame Street had always been the way it is now, it would still have accomplished its goals but it wouldn't have become nearly the cultural force it became, and people like us wouldn't have grown up to retain our interest in it. I know I wouldn't have.