Yeah, but let's be honest... the Best Song Oscar didn't go to some pretentious ethnic band singing about how horrible something is from a depressing "prestige" picture, and it went to a people pleasing song that time. And seriously, the BIGGER miscarriage of justice was that Blame Canada lost to the sappy, saccharine Tarzan movie song. Though, it DID give South Park a great passive aggressive revenge episode. I almost wanted Book of Mormon to lose to see them react to that one. Also, it wasn't that crappy song from Rio, which thankfully the judges thought sucked too, cuz it worked to our advantage. Though the Captain America song should have got a nomination. But it would have won it.
As for the Muppet songs, well... I don't think there's anything as strong as Man or Muppet, but I'd say I liked the original songs overall better to TM's. I honestly can't chose which of them I'd love to see compete. The sequel one sounds like a solid choice, but I'd say the wink and nod humor of the lyrics would put it as a disadvantage. I'd prefer the patter quality of The Interrogation Song, or the wonderfully warped Cockatoo in Malibu bit. Something so Right has that urgent penultimate act closer/last act opener feel to it.
Other than that, I think Paul Williams wrote the bull song from Book of Life. But that was pretty under the radar, it's likely it wouldn't get a nod. But if there's no Muppets on the short list, at least Paul Williams should get a nomination.