I am English, living the US with a 3 year old son. We go back to the UK every 6 months and the first thing my son asks for is Pocoyo.
The animation is great - plain backgrounds (at least in the first 2 series) which allows you to concentrate on the characters. Wonderful expressions and music and simple ideas about sharing, caring, being careful and being friends.
I am ECSTATIC that this is finally available in the US.
The thing that most appealed to me as a parent was 1) the shows are short, about 10-12 minutes 2) right now, the product is not commercialized (although that will probably change soon enough) 3) the ideas are simple yet convey quite a range of emotion - for example my son can understand that Pocoyo is sorry when he breaks his sister's toy.
If your child is watching TV, I would say this is a great addition. And you'll enjoy it too!