Oh at first I didn't like them. I remember being really disappointed when they were cartoons instead of puppets. However, I did end up warming to them. I caught shows here and there. I liked some of their crazy fantasy sequences.
The Fraggle Rock cartoon, on the other hand, I NEVER warmed up to. I hated it!
All that aside, though, I think it's okay to have those kinds of shows in addition to the physical Muppets but I would never be in favor of replacing the puppets.
See here is what I think is key in all of this.....
We all love the characters and that is what stands out to most people when they watch these movies and shows. People become attached to the personalities. It's a credit to the Muppeteers that they put such realism into their performances that sometimes, I think, people forget that there is a real art behind each and every little performance of these characters. Jim Henson was interested in many things, it's true. I'm sure he would be curious about other technologies and how to incorporate them into his projects but at heart, puppetry is what this is all about. How does one improve on the art of puppetry and how does one continue to use technology WITH puppetry and not in place of puppetry.
Anyway, I know I'm repeating myself. I'm just always so awestruck by how much just a little bit of felt and a whole lot of talent can convey.