There is also an odd reaction many people have to folks in mascot costumes. The common sentiment is that people want to beat them up. It seems to be a pretty well accepted reaction. Also to be considered is the stereotype of a street corner or shopping mall Santa who is immoral and badly kempt, or the many creepified parodies of Alice in Wonderland.

As far as I know, cynicism didn't used to be as prevalent as it is now in the US, but started creeping up after WWII. An increase in available information on scandals means we don't trust anybody - so Millenials and above poke holes in everything that doesn't seem absolutely authentic. So if you try to present something as simple and good (Santa Clause, loving parents, happy and mischievous critters), it can't be trusted.

I also think that puppets have a bad reputation because people don't know how to interact with them. They feel awkward around them. So if someone is too gung ho about them, that can be off-putting.

As far as I know, cynicism didn't used to be as prevalent as it is now in the US, but started creeping up after WWII. An increase in available information on scandals means we don't trust anybody - so Millenials and above poke holes in everything that doesn't seem absolutely authentic. So if you try to present something as simple and good (Santa Clause, loving parents, happy and mischievous critters), it can't be trusted.

Pretty sure distrust of the government started long before WW2.

I also think that puppets have a bad reputation because people don't know how to interact with them. They feel awkward around them. So if someone is too gung ho about them, that can be off-putting.

I'd agree with that. It falls back to the uncanny valley thing: older people know it's not a real thing talking to them, but their belief becomes suspended anyway and it sparks an uncanny feeling. Something not real, yet seems real. Kids have less problem with that because of the development of object permanence: http://en.wikipedia.org/wiki/Object_permanence