Whether the muppet rumor is true or not, the notion that they "have no place there" is a bit off. The muppets have long been used as an education tool. If adding a muppet host or something to the HoP gets younger kids in there, then I'd be all for it.
I can see people being upset that it is 100% the exact same ride it has always been. And even if it isn't directly related to the HoP, just having a few muppets in colonial garb in the area could help spice the area up. I think it's a bit silly to hold that part of MK up to realistic scrutiny when you have silly characters in every other corner of MK doing M&G's.
For me personally, MK is the most classic 'Disney' park, and it doesn't feel quite right for acquired IP like Muppets to be there. (Or Pixar, Star Wars, Marvel..) I think HS is the perfect place for the properties.