First let me say, congrats John Tartaglia!
But I have to say I am a little confused about this too. I mean Henson has had some really good success with CGI lately and turning puppets to CGI is something they're really good at. But I'm kinda sad to see them take the actual puppets out of this production. Either Henson truly believes that the mainstream market just wouldn't embrace another puppet show (although Pajanimals is doing well), or time and money is too big of an obstacle for a TV series. Either way, it's a shame.