What about the Muppet Show with Fred Rogers? (Fred would have had a marvelous time... imagine him singing his 'Neighborhood' song with all the MUPPETS instead of his usual puppets around the miniature town?!)
Big Bird was on Mister Rogers' Neighborhood once and evidently Fred and Caroll Spinney disagreed strenuously on showing kids that there was a human puppeteer inside Big Bird
I think that Rogers was internally consistent - he was creating a safe place with his neighborhood - and for him to admit that he was creating the appearance of a safe neighborhood being an 'illusion' was something he was very uncomfortable with.
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Whereas Caroll's argument was that kids don't want to see a strange bearded man's face sticking out of Big Bird's decapitated neck.
I can't remember what compromise they came to.