I don't get what is so bad? If you watch the video it has a story, it is just really poorly animated.

You seriously don’t see what is wrong with a five year old watching that? Did you even watch it?

Perhaps you could explain it rather than making an argument to incredulity?

I don't think it does have a story. Things happen in it, sure, but not for a reason. In one skit, the bad guys bring a tiny shark, then enlarge it with a magic wand. At first, it chases them in a pool, but after they get out, the shark flies after them. The shark eats punch and turns red. The Narrator says, "Red." They run into a room, and the shark phases through the wall. They run out of the room. They run outside, and the good guys shoot at the shark with guns. The shark changes color again. Finally, they shoot the shark with a wand, which changes it back again. This last part is the only part within the skit where something is stipulated, and then becomes relevant again. Every other time, something happens for no reason, and then that thing doesn't happen again.

In another skit, a girl want to play with all of the other kids. She tries to take away one child's toy, but he gets angry, and pushes her to the ground. She runs away, and finds her magic wand. The magic wand turns a red toy into an evil red ghost. The kids shoot at with guns until it pops. The magic wand creates a green ghost. The kids shoot it. Wand creates a pink ghost. The kids shoot it. Wand creates a yellow ghost. The kids shoot it. The girl runs away.

There's also no continuity or story between the skits. In one skit, the Joker sneaks into someone's house and kidnaps them. In another, he's a good guy, changing all of the watermelon into rainbow watermelon.

TL;DR: Shell out for PBS. Don't let your children watch this.

So it's nonsensical? I can understand that. But how do we go from nonsensical to harmful?

Watching that is tantamount to reading Act II from The King in Yellow.

Watching that was worse than August Underground's Mordum.

The main different between this and say the "Road Runner" series is Road Runner is somewhat better quality. But either way you've a series of exploding cartoon figures - what age wasn't Road Runner appropriate for?

https://www.youtube.com/watch?v=j4JbWb5xVEU