You're judging Disney on what exactly? One DVD release, another delayed one and Muppets Wizard of Oz, and from that you're claiming they've ruined them and are never going to do anything good, ever, ever again. Please commence the wailing and gnashing of teeth now.
It annoys me more than I can articulate the tendancy to criticise big corporations, simply because they have the gall to have been successful in creating a brand. McDonalds? The sole reason the world is so fat. Microsoft? Pure evil intent on global domination. Disney? Souless and uncreative. The fact is, that as companies become successful they grow. If they don't grow, they aren't able to continue to innovate, to continue to produce goods and services - they aren't able to meet the increased demand that is created through their previous successes, and therefore they fail and go under.
It's not as if there was huge demand for Muppet productions before Disney bought them, and I would almost guarantee that had Disney not acquired them, they would have even less visability than they do now. Step outside of your little closed fan community and see exactly what the demand is for Muppets in the outside world - it is not that popular. But, of course, Disney should take a loss on a DVD set by releasing it when the few fans want it, instead of taking time to develop a proper marketing strategy and hopefully have at least some mild success.
You know what? I couldn't get all the way through Muppets Wizard of Oz - didn't like it much, and yeah, that Christmas special was better (although not by that much). But you're judging Disney on ONE production in two years? Come on! How much Muppet rubbish appeared BEFORE Disney bought them? Muppets from Space was terrible, Muppet Christmas Carol was more dripping in Disney-fied sugar than Oz was, Muppets Tonight flopped like a bad pancake...I could go on and on. There were periods under Henson and the German owners (whose name escapes me currently) where the Muppets were under-used, or completely silent, and for a good time longer than two years (and let's not forget that in the two years Disney has owned them, we have one original series DVD set, a new TV movie, and a commitment to providing high-end collectibles).
Bein Green is right - it is what the Muppets stand for that is no longer popular in mainstream entertainment, and the way forward that I see is the "retro" market. Marky - Disney has been responsible for quite a lot of "hip" franchises recently (although I think if anything is described as "hip" these days it's a fairly good indication that it's not!), and to say the Muppets aren't "hip" because of Disney is ridiculous. It takes years to create a brand, and even longer to re-create a brand that has been allowed to stagnate and not evolve with the times. The blame for THAT mistake cannot be placed with Disney. Sure, there were attempts by JHC (Muppets Tonight, for example), but the focus on Sesame Street and child-focussed, family-friendly Muppet films in the intervening years between the original Muppet Show and the attempt to update positioned Kermit and co. in the wrong place in the eyes of the public. Give Disney a chance - see if they can be succesful in it, and be prepared to see some failures.
I will give you this - the unfortunate thing is that, because of the culture we live in now, and because companies like Disney have huge responsibilities to shareholders, there is less freedom to experiment than in the past, failures are not tolerated, and if a property like the Muppets start to be seen as a failure, it is more likely to be discarded than have huge amounts of money thrown at it to see if they can make it successful. That's not Disney's fault though, that is a simple fact of life.
And for those that think the Muppets would be better off if they were still with the Jim Henson company, let's not forget that they've sold them off twice now...it seems to me that they don't want to be throwing money at a property that is probably past its prime...