The thing about Avenue Q is that it wasn't marketed to the masses as HAPPYTIME MURDERS was, mainly because musical theater isn't really something for everybody anyway, and in fact, much of theater usually caters to mature audiences anyway - lavish shows with complicated plots intertwined with musical numbers aren't something kids, or even most young adults would want to sit through . . . they would be bored out of their skulls. Heck, even the average person would probably only go to such venues if only to see concerts of their favorite musical artists or groups.
And yes, I am aware that theaters also do family shows, but again, they're not exactly something families flock to en masse.
Movie-going, on the other hand, is something that's far more appealing to the general public, and is more likely to be a communal experience for families with kids anyway.
So, when it comes to adult puppetry, outside of us aficiandos, who out there would even be remotely familiar with Avenue Q?