Maybe I didn't see all the pictures before, but I swore that someone said Oscar's going to live in a dumpster/bin. Seems he's in his old "iconic but no one actually uses them anymore" metal can.
The logic question I'd have is, how the heck is Big Bird going to get any privacy without the doors? I'm not heart broken they're gone, nor am I really ecstatic. The street actually looks less rundown without them, and therefore modern enough to be compliant. But how does Bird not feel on display without them? Especially since there's going to be the weird disconnect in episodes without him. With the doors gone, there's none of that "he's at home, just not in the story" benefit of the doubt. I don't know why my mind instinctively went there, but those episodes where there's only like 2 main characters feel really empty. Like after the breakfast scene in MFS deserted.
Then again, logically, the doors feel like the barrier for one of those big city street projects that never gets finished because some developer backs out/runs out of money and leaves a huge blotch on the real estate for the suckers to deal with. You know. The kind where they tore something down in anticipation for something that never happens and they say "the heck with it, let's make it a park. We'll lose developer money, sure, but the property values will plummet and we'll more money that way." That's exactly what Big Bird's area looks like now. Like he made the nest back when they abandoned the project, and since the rest of the street is all gentrified and cleaned up, might as well make a little park area for him to live in.
Of course, if there isn't enough reality subtext for you, city streets do indeed change, and all it takes is for one upscale cupcake bakery to bloat the freaking rent so only Yuppies can live there. That's what happened, certainly, to the neighborhood I grew up in. Then comes the backwards arc when no one actually can afford to live there and businesses close up fast as heck. And like you got an upscale Indian place next to a Blockbuster that's been empty going on 3 years, a few storefronts down from what used to be 1 7/11. If anyone who lives in the Boston area knows what street I'm talking about, by all means shout it out.