I don't think there's any reason to steer away from this episode or The Backyardigan's in general just because the Goblin has some bad behaviors. Personally, I feel that this is a great way to open the door to explain these behaviors with your kids (stealing, rudeness). Whether it's your child or one of their friends, these behaviors will come up at some point. This gives you a relatively harmless outlet to show your children an unwanted behavior and the ability to explain the alternatives. On the whole, I love The Backyardigans and so does my daughter! This episode is no different.
Why let kids view teaching shows that subvert integrity?
I noted that my 5 year old gleaned the message from the "Grabbing Goblin" that it is ok to steal. You only have to return the item if the person you stole from discovers it and asks you NICELY to return it. Took a patient lesson to undo that, to teach that taking without asking is NEVER appropriate.
My little 2 year old is obsessed with the Backyardigans! Mom and Dad love the show, too. But, I must say I was very disappointed with this episode. The music is awesome especially the song with Adam Pascal!! The story (for the most part) and the animation is also great. BUT- The grabbing goblin steals! He has a huge room full of things he has stolen. Another thing that bothered me was when Tyrone and Uniqua asked him for something back (they even said "pretty please") and he covered his ears and said, "lalalalalala". Not cool. These are not behaviors I want to teach my little one. Unfortunately, now- I feel like I have to "screen" each new episode to see if there is something questionable.