So one hand, it's a great thing for kids, and I'm totally happy that it exists for kids and in its own building! On the other hand, I think it's aimed at the 7-8 year old crowd, and doesn't really work for younger kids.
The prices are a little high ($10 for adults, $7 for kids), but I'm okay with that because it's live entertainment that requires performances from actual people and because, like I said, they have their own building. The lobby area has an exhibit of old puppets and seems kind of like a history of storytelling/puppetry, but I didn't get much time to look around because I had the youngsters (2.5 years and 10 months old) with me.
The show we saw (Hansel & Gretel) was cute, and even though my 2.5 year old couldn't follow everything, she got the gist of it.
Unfortunately, there was a super long 'rules' spiel before the show started. The interactive song was cute, but kids already have short attention spans, and considering we had to get there a little early to get seats, and then wait through 20 minutes of 'please be quiet during the show,' my daughter was already struggling before the show even started.
I might still take my girls to see a puppet show, but it'll be more like once a year instead of once a month when I'm visiting Phoenix.