Fraggles = Hobbits?
Let's look at the similarities. Like Hobbits, Fraggles live underground each with their respective holes. Are gluttons, do the minimum amount of work, look for any excuse to sing, AND not only are they naive to the outside world but they also show little to no interest to it.
Uncle Traveling Matt is the only Fraggle to really venture outside of Fraggle Rock and his nephew Gobo (sounds like Frodo)also dreams of someday going on similar adventures, and possibly with his uncle.
Let's not forget that Matt also likes to chronicle his exploits much like Bilbo's There And Back Again.