What is it about Elmo?

Why do kids go nuts for this redheaded monster? I don't get it. And why the hell does Elmo refer to himself in the third person? Elmo is an egocentric little bastard, according to my husband. I responded to that statement by saying that children in general are egocentric little bastards, so they must be able to relate to him well.
Anyway, Elmo - yeah, he is annoying as hell. BUT he he sure is a lifesaver when you have a grouchy kid. Alex can be tossing himself on the floor, kicking his feet, being a nasty little specimen and if he hears that squeaky voice he'll freeze and then race to the source eyes wide and smiling.
We went to a strawberry festival this weekend, and Elmo was there - well, not the real Elmo, I'm assuming he isn't as tall, and probably talks more than this one did - and Alex was HORRIFIED. I mean, clawing at our legs to be picked up, eyes wide, mouth open - apparently Elmo has his place in Alex's reality, and that place is 2 dimensional and surrounded by black plastic.
Can you imagine how freaky that must be for kids, to see these characters from tv out and about? Personally I am not a fan of people in costume, even Santa - it's just not right. Some things belong only in my imagination, assisted by electronics - when those lines are blurred all hell could break loose. One day I could be walking along minding my own business and suddenly see a gigantic man-sized purple teddy bear covered in spikes, smoking a cigarette sitting on the front steps and swearing at me or something - you never know where it stops.
Okay, I've gotten off track here... what was I talking about? What a bunch of nonsense.