I went to high school with an Elmo, and he coped, so maybe I'm desensitized but after seeing that it wouldn't put me off using Grover (helps that I can say "no, like the president" when asked "like the muppet?" :) )
Some days I feel defeated over them and think they are irredeemable, and then other days I think they are slated for a comeback. I think they are in the same category as names like Herb and Linus. Names ready to come back, but not noticed yet.