The plot loosely follows the odyssey of Kermit the Frog from his swamp home to Hollywood in search of celebrity. The desirability of fame and stardom is never questioned. The Hollywood worship becomes pretty maudlin at the end, thanks mainly to songwriter Paul Williams, whose songs are palatable at first ("Rainbow Connection" was a hit) but become too much before the end of the movie.
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The role was a stretch for Irene Dunne, usually a comedienne who teamed with Cary Grant, among others, in screwball comedies of the '30s and '40s (The Awful Truth, etc.). Unfortunately, the film signaled her retirement rather than a new beginning.
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There's still no reunion planned though.