I've always understood that to be ignorance on the part of Scooter- i.e. I think maybe he heard it on the radio or something and didn't realize that it was actually an Elton John song...
After reviewing that scene, I don't think so. Scooter showed no surprise at hearing that it was one of Elton's songs, and neither did any of the others who sang it. Kermit was the only one who acted as if it was a surprise. I think that Scooter was just showing off, displaying more enthusiasm than talent at that point.