If they really want to be modern, then they should tear down Hooper's and replace it with a Duane Reade. And I'm half serious, btw. I mean, the point of the show when it began was to depict city life in a somewhat grounded fashion (while still keeping it friendly). That all goes out the window every time they bring in an Elmo's World or Abby's Flying School.
While I see your point, I have to say that the grounded element was
already out the window when they started the "around the corner" era. That was the start of the weird focus on fairy tale characters randomly stopping by. I mean, don't get me wrong, the Furry Arms hotel was cute, and it was great to have Ruth Buzzi as a cast member, but overall
that's when the show went from real inner city street with some small fantastic elements to "crazy imaginary place where anything can happen and often does." And yes, that was indeed to keep relevant when SS's focus was being challenged by that public access looking guy in a foam rubber suit was
defiling the good name of Tyrannosaurs Rex. And that people were leaving and passing on as well. It's a real shame since that's when Sesame was able to "find itself" in the 90's. Things are actually a little more grounded now. Not by much.
But I do agree that the reality of the show has left. It's just that it hasn't really been there for well over 20 years. It's hard to believe this is a real street when the Three Blind Mice stop by, jumping all over the walls so Alan can tell them about breathing exercises.
Isn't spy technology more about wacky gadgets disguised as ordinary objects, not about technology that can do amazing things?
It's such a shame tech has come so far as to render any of that kind of joke telling obsolete. The entire genre of spy parody just lost its funniest (if overused) gag.