Logically speaking, I understand that Kermit and the rest of the muppets are made of cloth and foam and plastic, voiced and controlled by very talented puppeteers. But after a lifetime of watching those characters sing, talk, act, fall in love, teach, bitch, build, and deliver the news, well, it's pretty hard to deep down convince myself that this is anything but a photo of Jim and Kermit having a conversation. Maybe about his motivation for the next scene? Seeing the wires does not, in this case, seem to destroy the illusion for me.
Jim Henson on set