I enjoyed this week. I get the feeling that some people here feel that the Muppets should exist in a time warp, frozen from all external influences. I think the Muppets should (and do) reflect the show they're on.
Kermit wouldn't tell the same jokes on Wayne Brady that he would have told on Jimmy Kimmel or "I Love the 70s". I have no problem with this. In fact, I am really impressed at Steve's ability to ad lib throughout the week.
I guess a lot of people want Kermit to be "family entertainment". As some have pointed out, he never was intended to be that. Sure, he's not as blue as the Gorch Muppets, and certainly not as vulgar as Triumph the Insult Comic Dog, but Kermit has a great edge sometime that always makes me laugh.
I think a lot of people who are complaining about Kermit's treatment on the show are unfamiliar with the show and its format as well as its host. Heck, every cohost has had jokes directed at them...it's just the nature of the show. It doesn't mean Jimmy doesn't like them. It's just the kind of humor he's known for.
In short, I think that a lot of younger college age fans have been reborn with the Kermit revisit. Kermit's evolving and I, for one, am enjoying it.