Yes, this is part of the original Muppet Show pitch =)
I was about 6 when he died, and I remember my mom crying when she found out. I come from a family of Muppet fans.
My dad bought one of the first home VCRs back in the 1970s when they came out - $1500 for a VCR that would just tape one show. You could set the channel but you had to remember to turn the thing on to tape. And he would tape the news to watch after because the Muppet show came on the same time. Now THAT'S a Muppet fan.