I don't watch Sesame Street anymore, as I'm outside of the States, and also because I don't have a TV. (I have a TV set, but no cable or satellite; just a set for watching DVDs with)
I have, however, been keeping up with the show via Youtube and the Muppet Wiki. All I have to say is, I really don't care that much for the recent stuff. I think it's because of the Elmo and Abby hoopla. Elmo's okay, I just don't like the fact that he's the "big thing" now. It's Abby that I have a bone to pick with. I just think she's too goody-goody and too girly even for Sesame Street.
But hey, who am I to complain? Sesame Street wasn't made for us (those way above 5 years of age) to begin with. If the kids are enjoying it (the show as it is today), then so be it.
And the funny thing is, a few years ago, I was staying at a home school/camp run by some friends, one of them a mother (American) of three kids, all of whom are aware of Sesame Street - and the Muppets in general - and are about the target age group (I'd say about 5-6 years old). I showed them some 1969-77 episodes I had on my computer (ones that were ripped off from Noggin), and they loved them, especially the Hawaii episodes and skits with Ernie and Bert (they especially laughed at the "Imaginary glass of water at night" sketch) And interestingly enough, not once did I hear any of them ask "Where's Elmo?" or "Who's that old man?" (Mr. Hooper)