Wow. That sounds pretty scary (the concept of the episode and the response it got).
I think there could be an imaginary episode using the Wicked Witch street scenes, and the segments could be various scary Sesame Street segments, including Kermit's B-sound lecture with the Beautiful Day Monster, Kermit's "In" lecture with Grover and Fred the Dragon, Ernie's rock-hunting skit with Fred scaring Ernie, the clip with Bob and Luis making the train tunnel, a Mysterious Theater segment (any one would do, but I think the "Missing Cat" segment would be a good choice), the Red-Hot I animated skit, any song that has to do with danger, the "Yakity Yakity Yak" animated segment, and the "Count of Ten" segment with Limbo.
Cool idea, huh?