The thing is there's more money in doing it for the kids, that seems to be what SW wanted and what F4All wanted. They saw Palisades had got a corner of the market where they had built up a nice following of nostalgic adults buying Muppet toys and seemed to think they could try and do that as well to bump up the income in addition to the kiddie sales but then realised that Palisades weren't just simply putting out a toy but had upped the quality and the method the figures were released to cater specifically for the adults. F4All see the kids as the main market so they don't want to change what they are doing that drastically, and don't really want to put the money into the figures or have the know how to do it Palisades way which they had foolishly promised.
I think with action figures you can either do kids toys, or collectable figures for adults. In the few licenses where adults have bought figures from kids licenses it has usually been that the manufacturer has made and targetted them for the kid market but the adults have bought into them regardless (Spiderman, He-Man, Transformers Armada). I don't think Fun4All should have ever made the move to try and emulate Palisades. Sesame is a license geared at much younger kids anyway, they should have just made them soley for little kids and seen it as a bonus if adults picked up on it, not gone after them in addition. That's how Muppet merchandise was sold for 25 years. Trying for the best of both worlds doesnt work - you've only gotta look at how Palisades have bombed with the kiddie market and the main kid focused bricks and mortar stores like TRU to see that. The difference is that Palisades tested the waters, saw kids were not that interested in Muppets anyway and pretty much knew that their niche would be the adult collectables market and stuck to it. Maybe the sales aren't as fantastic as they could be but it is a steady consumer base, if they had dumbed down for the kids and tried to attract the adults too (like F4All were trying to do) i think they would have been in the same situation as Fun4All right now where the product has to be kid friendly but then having to try to appease the adults needs (meaning the price has to rise due to the quality which in turn starts to price themselves out of the kid market) and basically ending up alienating both groups of consumers and getting in a right mess.