I can't find it on YouTube, so you'll have to sit through the theme song this time.
This is one of those sketches where I have to remind myself not to read too much symbolism into it. Sometimes a cow is just a cow. And it's all about conflict resolution and learning to make compromises, which is a good thing.
Moreover, there a grand, longstanding tradition of Old West-themed Sesame Street sketches, and I'm glad to see that the tradition continues.
It makes for a good wanted poster too.