Well, that's a bit of a strong reaction to muppet babies. No one says they have to fit in with the actual muppets. It's just a cartoon that was done well. I don't know why people get so mad about this show just because it doesn't fit into the actual muppet history.
Oh, if you REALLY want to get mad, just look at the muppet movie and compare it to actual muppet hostory. Kermit had a stop at Sesame Street way before he met the producer in the swamp, but that whole part of his life was left out. And before then he had that part in Sam and Friends, but that was left out of the movie too.
Oh, and I have an easy way to fit Muppet Babies into the Muppet Movie history. You see, one day Baby Bunsen and Beaker blew up the nursery and all the muppet babies were sent to an orphanage. They were each adopted by various famuilys. Fozzie was adopted by Emily Bear, Kermit was adopted by his mom, Scooter was adopted by his long lost Uncle but Skeeter was left behind, Gonzo became a starving artist on the streets at an early age. ect, ect, ect. Since the muppets were so young, they forgot all their old friends and went on with life. When Kermit meets Fozzie at that club they become fast friends because they use to be friends, but niether of them remeber knowing each other since they were so very young.
Anyway, years later Emily Bear shows her son an old home movie showing all the muppet babies together, but she never reveals what happened to the nersary or that Fozzie is adopted. And so the muppets all learn of the past they shared, but no one is told they are adopted, so everyone is happy.
By the way, Statler and Waldorf forgot that they baby sat for Nanny because they are so old.