Ah yes, one of the shows that started the whole "Let's make all these well established character younger again for the cute factor." And for some reason, I thought it worked pretty well, I watched this show whenever I got the chance on Nickelodeon. I say it was pretty good for a kids shows, especially since I was a kid when I watched it, and seeing an episode later down in my life, I thought it held up pretty well.
Personally, I always like Gonzo, Animal, Fozzie, Bunsen, and Beaker, but then again, I always liked them when they were regular Muppets. I also like that one episode where Statler and Waldorf had to babysit the babies, even if their bit was played down a bit.
Too bad about the rights issues, otherwise, this series would be a definite buy from me.