Do they still have "Guy Smiley" type game show hosts on real game shows? He may just be outdated in that sense. I don't think game shows of that sort are as popular as they used to be. Today, I think "game show host" and it's Alex Trebek or Pat Sajak.
As much as I like the minor characters, I'm glad they cut back a bit. Watching Season 25 reruns, I realized how confusing it was having so many characters. You don't get a chance to develop an attachment to the characters if they keep showing so many of them and not very often!
But, I don't think that they are focusing exclusively on the "new" characters (Elmo, Zoe, Rosita, Baby Bear, even Telly, etc.). Cookie & Grover & Bert and Ernie & Big Bird & Snuffy get plenty of exposure and plot lines "On the Street".
And Cookie is my 21 month old's fave character, just like mommy!