I think it was interesting having Pepe and Beaker. At first I didnt think that would work very well, but Piggy and Beaker did very well together. I think Kermit being so nice was kind of a joke with the punchline being Piggy's line of not being on Sesame Street.
It was also nice seeing Kermit interact with the others and it not seem flat. I mean by the end of it they were all aruging wich i found very funny.
As far as appearances go I would give it a 8 out of 10, and the only reason its not a perfect 10 is it could have been longer.