@RST,
They already have some people lined up to operate Elmo -- there had already been substitutes, understudies, that sort of thing, and Kevin Clash is evidently working on identifying and mentoring which one will take over completely.
As for this situation, lots of elements.
1.) I think it's sad that just the allegation alone can be enough to destroy someone's career, especially when that allegation was later recanted.
2.) HOWEVER, I think it's very possible that the people (or one person) were/was actually 16, and didn't come out with it now not because of fame/ money but just because of dealing with the whole thing. That definitely happens.
3.) I don't think the gay chat line thing is really here or there. Definitely doesn't negatively impact credibility in my eyes. Someone could both be doing a gay chat line (which certainly was stupid and risky) and also be maneuvered into a situation where he has sex with an adult.
4.) I think it's possible that Kevin Clash is really completely innocent of any wrongdoing -- that he believed that he was having sex with people who were of age.
5.) I also think it's possible that he did know that they were very young and proceeded anyway.