I've got a feeling it will never be made with Weinstein and Henson will go back and re-develop it with someone they more traditionally co-produce with. Too many people involved in this who claim to "get" the Fraggles, but really see it as just another pop culture brand. I can see the roads they are trying to go down with it, and they are the kinda roads you need to go down to make something like this popular now days (like lookin at the music side, cameo side etc) and asking for "edgy" doesn't neccasarily mean "Avenue Q", it's probably more they feel the Fraggle concept would seem a little slow moving/deep for todays kids and they need to make something they can connect with easily and buy into. But .... if you do a deal to make a Fraggle movie, then for the most part you need to stay true to the Fraggle concept and characters or there's no point doing it, and they should understand that or they might as well just go and invent some new brand.
I definitely think something "Fraggle" could work today, you only have to look at Karen Prell's appearances that the energy and presence is still there with the characters. Red can still hold her own and get people joining in, laughing and interacting.