I am pretty mixed about this info....
If this means that ALL the characters are in it in a bizzare Elmo-verse where everything is crayone drawn, it sounds like there could be potential. That is, Elmo's imagination gets away with himself, leading to child-friendly and adult appealing mayhem. I.e. Elmo could draw some sort of monster or something that gets out of control, causing him to have to rescue everybody.
But do I see this as a Theatrical movie? Not by a long shot. True, I would LOVE to see another Big Screen venture, but it seems unlikely, and considering the idea is just an idea as of now, if a Sesame Movie is made, it won't be this one. Direct to DVD? Sure. It would work better as a 90 minute minifilm or something of that nature.
But I will say, just because Elmo's name is scribbled in Craolya Red all over it doesn't mean it would be terrible. I didn't give Elmo in Grouchland a chance until last year or so, and I was pleasantly surprised. It was Elmo's Movie, but Big Bird and Oscar were still there. Too bad Kermit didn't have a cameo.
But then again, this could be nothing. Let's not get into an Anti-Elmo tizzy for something that may not be.