What's the deal with Muppet Babies?

I was just walking through the office, and somebody asked me a question about Muppet Babies. Like I would know. I'm only partially omniscient. (Meaning I'm only partially all-knowing, for you geniuses)

And it got me to thinking, what exactly was the deal with Muppet Babies? I mean, that chick that supervised them, they called her "Nanny" right? Meaning they were at daycare. But do they ever go home? Not that I remember.

So that means the nanny works at their house. Meaning they are all siblings.

Good lord. What two creatures got it on to create "Muppet Babies"? Is that even possible? Why do I have these thoughts?

Still, it could be worse. Dave got drunk one night and ended up with three talking chipmunks.