Lives on after Jerry Falwell. Har-de-har. For the record, Falwell didn't "out" Tinky Winky, the MSM did:

In the Nexis archives for 1998 alone, there are dozens and dozens of mentions of Tinky Winky being gay – in periodicals such as Newsweek, the Toronto Star, the Washington Post (twice!), the New York Times and Time magazine (also twice).

In its Jan. 8, 1999, issue, USA Today accused the Washington Post of "outing" Tinky Winky, with a "recent Washington Post In/Out list putting T.W. opposite Ellen DeGeneres and Anne Heche, essentially 'outing' the kids' show character." Michael Musto of the Village Voice boasted that Tinky Winky was "out and proud," noting that it was "a great message to kids – not only that it's OK to be gay, but the importance of being well accessorized."

When Falwell mentioned this in passing a year later, all the same sources pounced on him for saying what they'd been snickering about for a year. "Where does he get this stuff?" they cried.
I doubt very much toddlers will pick up on the "gay" theme. But their brains may well be turned to goo by the insipid nature of the program. Resist, Poland!