Basically.... I can't even find this the least bit true out of anything. Unless SW goes completely Bankrupt and some other company buys them out and views it unsuccessful, I don't see it ending any sooner than SNL or Meet The Press.
I agree parents use it as cheap day care... but that's true for TV in general. Look at Nick Jr. and Tickle U.... nothing but baby sitters with no bloody substance.
The Veggie Monster thing is as blown out of proportion as the rumors of a Sailor Moon movie with Lindsay Lohan. We ALL remember the truth was they toned down his eating cookies to a fraction of a percent. They sang how Cookies were sometimes foods, and plastered big blue all over apple sauce containers... that was about it.
Anything else is idiot parent talk. No Oscar and No Elmo.... preposterous. The entire idea of Oscar is that he really DOES care about everyone, and they all take his grouchiness with gentile humor. And Elmo? He's more articulate than the average 3 1/2 year old, speaking in third person and everything.