I think he means that it's being murdered because the changes they made based on the popularity of other educational programs for the kids.
Keep in mind, ya'll, that the demographic for this show isn't the same as, say, The Muppet Show. The Muppet Show has hidden inuendoes and is aimed at adult and family audiences. Sesame Street originally was intended for kids to teach them, but had some grown-up entertainment to keep the parents involved with the kids.
Not that all parents are like this, but nowadays the involvement parents have with kids aren't nearly as close as it used to be: both parents HAVE to work to make it, kids are left with older siblings or cousins to babysit them, or put into obviously non-qualified day cares or preschools who don't teach the kids.
Now, SS has (in my opinion) dumbed the show down to be more on a level with other popular programs and so their format has changed. Elmo appeals to the 2 and 3 year old kids, so Elmo's world is a necessity. They have now got, instead of the commercial feel they used to have a few years ago, segments of the show which are dedicated to particular topics.
What WE'RE used to is the quick skits, the humor we were raised with, stuff that the whole family can sit and watch. In today's time, kids are left alone to watch tv and make of it what they can while parents are working, cleaning house and doing chores, or whatever they MUST do.
I don't think the decrease in episodes or an increase in cast will make a difference, what will make a difference is society, and when we begin to behave with our kids (I don't have kids, btw) the way we used to (when my mom would sit and watch TV with me, or my nanny) and/or society ALLOWS us to, then we might see a change in the way the show is produced.