Confusing Reality pertaining to Walter
The reality depicted within this movie is a little confusing:
Jason Segel is roommates with Walter who's dream it is to JOIN the Muppets but is NOT a Muppet himself....even though he is made of felt and is a puppet/muppet-like character.
Haven't we always assumed any Muppet-like felt-covered character within the Muppet universe is by default, simply a Muppet?
So what this movie is saying is that humans and puppet-characters just co-exist kind of like Who Framed Roger Rabbit with cartoons and humans or Greg the Bunny with puppets and humans?