Should it happen? I think it would be an expensive option for the Academy - each Muppet comes with multiple wranglers, my understanding is that taking The Muppets out of their usual environment is expensive in terms of upkeep and security, and there would have to be a really weird stage set up to allow the muppeteers to interact with the real humans. Also, the larger technical issues could threaten to make an already unwieldy show impossible to manage.
More than that, I think it's the sort of thing that the Academy would never, ever want to do, because it takes some of the air out of the night - the Oscars is Hollywood taking a deep breath, bending over and sucking its own dick. The Academy has a sense of humor about itself... to a point. Having a felt frog as MC might be the point.
Also, are The Muppets still relevant? The new Disney relaunch is all about trying to return the characters to their previous pop cultural place, but we have no idea if that will happen until the movie comes out at the end of the month. I believe that the roots of this campaign came from a Disney viral promo, and as such it's HUGELY successful, but will the film be as successful?
Some people have said that a Muppets-hosted Oscar show couldn't be edgy or wry, but I disagree; at its best The Muppet Show had sharp satire. I know the brand has been hugely diluted since the death of Jim Henson, but if the revitalized Muppets have that 60s spirit to them, their show could be good. I know the Muppeteers are strong improv talents, and I think they could put on as good a show as any human.
Should The Muppets host the Oscars? Weigh in below, although I suspect you're all going to be for it.