You sure you didn't get the X-rated version with the anatomically correct Muppets? A whole different take on Bert and Ernie. And the things Grover gets into. Don't get me started on Snuffleuppigus and what he does with his trunk/s.

Back to reality. It doesn't surprise me much. Moralizers and finger waggers can find corruption anywhere they look. Mostly because what they are seeing is the reflected corruption of their own minds. Moralizer don't eliminate their own corruption. They project it away from themselves.

Falwell thought the TeleTubbies as a gay conspiracy because they were carefree and one of the characters had a magic bag that reminded Falwell of a purse. This is a guy who once claimed that a good Christian should soap up the fixtures in the shower so you won't see yourself in the reflection. No kidding. Scary that Falwell, now safely underground, and people like him think they should guide our nation.

It wouldn't be much of a problem except you know these people are likely to sue anyone for 'corrupting the children' so everything has to get a warning label.