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It was no longer consistent with the theme of the land or park. The theme of the Muppet area used to be a movie prop and development warehouse (see the Acme Factory in Roger Rabbit) on a backlot of a larger, functioning production studio (Disney-MGM).


The park, despite it's name, is no longer viewed as a studio. Themes and attractions park-wide are being/have been changed or removed to reflect this fact. The same can be said of the Muppet area itself. The backlot theme is being eliminated and replaced with the Grand Avenue theme which, in Muppet Courtyard, is taking the form of a gentrified industrial area in Los Angeles.


I think the mural was also an outdated reference to MGM Studios. Disney has been making efforts to rid HS of ant IPs not actually owned by the company. MGM has not been part of the park's name or brand since 2008.


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