I get why they wouldn't go with the project if they wanted to move away from the 80's nostalgia thing, but it could have been so meta!
The show can take place in the 80's, but be filmed now, so all throughout the show we see inconsistencies that the props department needs to fix. Like Kermit making a call on a modern cell phone, but Scooter comes in and has to swap it in for a a giant 80's model. They could even make 80's Robot the technical consultant! Maybe Piggy has a scene where she refuses to get her hair permed again because she hated it and so she has to wear a wig that doesn't quite fit right and we see her "real" hair stick out from the bottom. Gonzo wants to do a stunt he did in the 80's, but the Legal Weasel comes in and tells him that their liability insurance won't cover the stuff he did in the 80's.
The whole show could have been a spin on 80's nostalgia and played with the show within a show concept, but that probably wasn't going to be the case anyway.
That being said, I hope the new show is good and does well and we see more quality Muppet stuff.