Hey, sock puppetry is no more and no less freaky than doll wiggling. When Boober's jester puppet kept acting up in The Incredible Shrinking Mokey I of course thought that it was Sidebottom acting bratty, and that led to the idea of letting him out in puppet form, which would be a lot more acceptable to Boober than letting him take over his body. Which isn't what Sidebottom wants anyway.
I figure that every spring, with all those Fraggles shedding their winter pelts, the caves must be choked with technicolor tumbleweeds of Fraggle fur. Unlike the Once-ler, Fraggles are pretty good at living in harmony with their environment and using what they have wisely, and it just seemed common sense to put that fur to good use. One of Janken's possessions is a kit scarf made of various colors, a gift from the rest of his family. I wonder if he'll ever explain that to Scooter? "You know how some people keep a lock of hair in a locket? Well..."