This post is about an atmosphere performance that takes place in Liberty Square, not about a major attraction. I really enjoyed the show a few times, but I haven't seen more than a few dozen people actually show up for the performance to start. And maybe a few dozen more who happened to be walking by while it was in progress decided to actually stop and watch to the end.
And I would prefer that it kept running, but atmospheric shows like this come and go all the time. The headline that it's a cut is accurate, but for those implying that it's cost cutting, we really don't know that. Nobody on these boards ever speaks about new entertainment as "budget increases," like when this show premiered. By all means, you're right to express disappointment and tell Disney that you want it to continue, of course. But the number of atmosphere shows in the park are ever changing and don't just go in one direction downward.
Oh and by the way, I don't think we can draw any general conclusions that the Muppets in general being cut or downplayed based on this one thing.