Is everybody forgetting Waldo's first appearance in The Jim Henson Hour (which predates MuppetVision)? Here's video of Jim Henson performing Waldo.
I don't think anyone forgot about it. A lot of people may not know.
What is fascinating to think about is the tech goes all the way to motion capturing and Jim Henson projects like Sid the Science kid and non Henson projects, ironically enough, Monsters Laugh Floor with real time rendering of digital puppetry.
But of course he was not the character he was to be in Muppet Vision at that time.
Bill Prady specifically worked on Jim Henson Hour and fun fact, after theme park work he would do sitcoms including Dharma and Greg and Big Thang theory. So he knows all about producing intentionslly annoying character foils.