I'm ABSOLUTELY THRILLED that Kermit and Piggy will be presenting!!!
Despite the ridiculous decision to drop the Best Song performances, there's no way a broadcast honouring the past year in film could not have included the Muppets in some fashion, after the world (and the entertainment industry in general) welcomed them back with open arms.
Thank you to panmanthe2nd for that link to the Academy Award section of Muppet Wiki. Until I saw that page, I had no idea that Kermit performed "Rainbow Connection" at the 1980 Oscars (although I knew it was nominated), or that Kermit and Piggy sang "The First Time It Happens" at the '82 Oscars (or that the song was nominated that year), or that Statler and Waldorf also appeared with Kermit, Scooter and Jim Henson at the '86 Oscars. Very cool.
"The First Time It Happens" lost to "Arthur's Theme (Best That You Can Do)" at the '82 Oscars...that's just so weird and bizarre I can't even see straight when I think about it...