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It's ridiculous that Melanie would be fired for a 30-second clip that no preschooler in her audience would ever see or be aware of. I doubt more than a few adults would have ever seen this thing again if she hadn't been fired over it. My 10-month-old son loves Melanie, and lights up when she comes on screen, but I somehow doubt he's going to IMDB her and see if she's ever worked blue.
And as far as working blue goes, didn't George Carlin host Thomas the Tank Engine for a few years, without corrupting the preschoolers of America? Hasn't Frank Oz worked on a few R-rated films? Should PBS have fired him, and deprived us of Bert, Grover and Cookie Monster?
And, yes, that star puppet was disturbing. Besides looking freakish, he also sounded like the little kid from The Shining. Every time he came on, I kept expecting...
Melanie: I love doing crafts! What about you, Star?
Star: Redrum! Redrum!!!