There is room for all opinions.
Though we do tend to say the same things about the debate over and over. I'm not sure we really listen to each other all the time, myself included.
And yes the show is meant for children, but exposing them to simple "baby humor" does not help their development. They also need to be exposed to adult references, even if they're too young to fully understand. It's how they are prepared for the world. Otherwise they grow up thinking the only thing that matters is their own little world. They don't want to know about the adult world. Sesame Street used to do this, and a number of successful kids show still do. Because it works.
Honestly, if Sesame Street was losing its fanbase in the mid-90s, I don't think it was because their original method was outdated or flawed. The show suffered because it lost several major characters and because other kids shows were popping up that were fresh and different. Even when something is good, inevitably something new will take its place.
It happens all the time on Television. The Simpsons were wonderful, but you can't produce gold forever, eventually you run out of stories. IMHO, it became a little too popular, too mainstream. Similar shows like South Park and Family Guy arrived that were new and fresh, went places The Simpsons had never gone before and gained an audience.
No one here has to agree with me. But as I said, there is room for all opinions whether we like them or not.