Ernie contemplates his toes, then sings about them.
This is a cute little song, featuring cute little puppet feet and a few good jokes: "You think I'm pigeon-toed? I'm so proud!" Also, I always laugh at the line in the song that says, "Though they might not smell exactly like a rose," partially because of Bert's reaction to Ernie sticking his toes in Bert's face. The only thing potentially groundbreaking (haha) about the sketch is that we get a shot at the floor. Speaking for myself, I'm not as impressed with that as I should be, because I forget that usually there isn't a floor and it had to be built special. I also forget that usually the puppets don't have feet and they also have to be specially built. But the illusion is so successful and suspension of disbelief is so effortless that I just take those things for granted.
I have to wonder, though, what's it to Bert if Ernie wants to contemplate his toes? He was in bed, he was quiet...cut your losses, Bert! But maybe Ernie insisted on having the light on so he could see his toes and that's what was bothering Bert. That would make sense...although it is a pretty unobtrusive lamp.
By the way, to give credit where it's due, this is Frank Oz as Bert.