GelflingWaldo and Hays seem to be the only people who really understand the real story behind this. They really know how to put their thoughts into an unbiased fact-based answer.
Other than that, it's all the same angry fan rants about "Oh boy.. Elmo is dumb... where's some character that hasn't been on since the early 80's." I understand you, and I feel the same way... but keep this in mind...
IT'S A KID'S SHOW!!!!
So the question is, has Sesame Street lost its educational hold? Yes and No. Yes, as in they only have one letter and Number of the day, and they have what seems to be less of other things, but here's where the no comes in. Different ways of teaching different things. Times have changed, and as much as we all would like the classic episodes and skits to be used more, the sad truth is they can't. Kids like Elmo. He's more personal to them than Guy Smiley and such. And remember, kids like to see kids on TV over adults. Kids like to read books about kids. hense Harry Potter's popularity over... Scarlette O' Hara. Plus, they are teaching newer stuff, like More Spanish words than just uno, dos, tres, and Hola and Adios. They are teaching about different cultures in every episode via Global Grover. They didn't lose any educational value, just tweaked it.
Besides, I don't recall the SS characters talking about "Frustraited" until now.