The Kroffts have outright refused to go the route of CGI, and are sticking to their guns on traditional puppetry - however, they have admitted that many of their puppets now are considerably more advanced than they were in the 70s, with much more radio controls for facial expressions and movements.
As for the Pufnstuf movie, as well as the Lidsville movie, I seem to recall reading recently that those are back in Developmental Heck over supposed interferences regarding the movies' tones and structures.
Aside from their MUTT N STUFF hit on Nick Jr., the Kroffts recently rebooted SIGMUND AND THE SEA MONSTERS and ELECTRAWOMAN & DYNAGIRL, but they're internet-exclusive; the former just had a pilot on Amazon and they're still awaiting to see if it will go to series, meanwhile the former was an eight-episode miniseries on some sort of a platform. While the new Sigmund puppets look remarkable, the new EW and DG look more like Steampunk Lara Croft wannabes.
I'm just still amazed that, given what a small, independent company that they are, that they're still managing to continue working to this day. It's baffling that they retain copyright and creative control over MUTT N STUFF, considering Nick Jr. is owned by Viacom, one of the biggest devil-worshipping international media conglomerates out there (but then again, they're also letting Bagdasarian Productions retain rights and control over ALVINNN!!! AND THE CHIPMUNKS, so maybe their business practices are slowly shifting). Marty often talks about how lucky he and Sid were back in the 70s and 80s in working with the right people at the right times, and how they probably would have never gotten any of their shows done today with the amount of corporate interfence among networks skyrocketing. For example: they personally put out a casting call for Witchiepoo for H.R. PUFNSTUF, and only two people responded - Penny Marshall and Billie Hayes; the former obviously wasn't right for the part (an obviously Bronx witch), while the latter got the part simply by jumping up onto their desk and letting out that trademark cackle; Marty says if they tried that today, the network execs would be auditioning hundreds of witches and not even give them any say in the casting decision.
On an unrelated note, Marty also recently revealed why he and Sid did less shows in the 80s: they were on the verge of going bankrupt. Their shows were very expensive to produce, and with them producing so many at one time (they had four shows going at the same time at one point in the 70s), they were on the verge of bottoming out financially, so they needed to slow down.