While I think many are over-interpreting the quality of these results, yours is sounding like a clear case of a No True Kermit fallacy. There are many ways to

While I think many are over-interpreting the quality of these results, yours is sounding like a clear case of a No True Kermit fallacy. There are many ways to define what "Kermit the Frog in $MOVIE" means, and the choice the AI made is absolutely valid. There are of course various other valid choices, but this doesn't invalidate the ones presented. Furthermore, judging by some other examples in this HN thread, it seems that the fact most of the pictures are not puppets is more of a choice of the human choosing the photos, as in other cases DALL-E was indeed adding puppet-like characters in movie-like decors.