Just because it is included frequently on the radio of a fan site (especially one that's not mantained or approved by Sesame Workshop) does not mean that it is not banned. The Muppet Wiki page quotes an article about a line that was either going to be cut or the song was either going to stop being shown. The lines that seemed innappropiate were replaced in Elmopalooza. It seems like it must have been banned, because it was not included on the rereleases of Born to Add or Monsters, two albums that originally included the song. It was also never shown on Noggin, though I don't know if Noggin actually showed any episodes that originally included it.