Guys, I hate to be 'that guy', but there is some truth to this. If this were happening and Jim were still alive, then he probably would side with his kids. They're his kids after all. Most fathers will stick with their kids, they love them after all.
On the other hand though, "fathers must discipline their children" as well, so perhaps he would step out of heaven and come up to both parties, lay his hand on their shoulders and say, "Steve, I do think you've become more arrogant ever since you got the role of Kermit, but I know that your heart is in the right place, you just need to tone it down a bit. As for you" - addressing his kids - "the Muppets were about peace and love, not hatred against other people. Remember that the next time you respond harshly against Steve."
F*** me, it's 12:30 at night, I'm not thinking straight. Feel free to disregard this whole post.