I have Kermie, Animal and Gonzo should be here tomorrow.
It sounds more likely to me (from Travis' comments) that MR had already been struggling with the nose issue and exhausted too much time and $ on the issue already when Disney suggested the stocking material cover-up. At that point, I'm sure the decision was made to stop fighting with the nose and go with the suggestion of the licensor. Yeah, I very much think a better solution could have been made, but we'd probably b!tch about it here anyway because it wouldn't be close enough to the foam. Still, the stocking was a really bad idea but I'm sure if Travis were in charge things would've been different.
Like many of us here have expressed, I would've spent more for a Gonzo with a more accurate nose (whether that be rubber or plastic or whatever) but I don't know if that goes for everyone buying him. If they would have chosen to go with a degradable foam, but a more accurate looking Gonzo, I also would've been okay with that, too.