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Fun Fact: The Walrus was originally going to make roaring sounds, but it ended up scaring kids in the test screening, so they changed it to the human giggles. And knowing what Walrus sound like, I don’t blame them one bit

You're right, the letter the old penguin gets at 1:25 would've been a letter informing him of someone's death. Traditionally,paper with a black border, as seen here, was used for this purpose.

The walrus was created for some sort of showreel where he spoke a full sentence, thus explaining the incredibly odd design choice of having human teeth.

I can confirm that pingu running away genuinely distressed me as a kid. The sense of dread was nuts…but a nice relief when he’s picked up by his parents!

The reason Pingu being a demon child works here, is because he ACTUALLY gets punished.
Unlike Caillou who has spineless parents

There exists a Pingu Korean dub, where the characters actually speak English. Apparently they were used to teach children to learn English (but this was done very poorly). That being said, they spawn many crazy out of context moments that are so bizarre that it's actually hilarious.

In an official Pingu storybook - ones that essentially retold episodes of the show with illustrations, released around the same time the show aired - it's clarified that the walrus's ultimate intent was to eat Pingu, not just eat his bed.

I live in Canada, and the walrus episode aired there a few times. As a child (likely 6 or around there) the walrus made me screech, hide in a utility closet and sob for hours until my mom talked me out of it. I can't possibly express how deeply and genuinely horrifying it was.

“French accented penguinese” is a gem of a line

Apparently, there was an audiobook version of Pingu delivers the mail, where it specifically says that one of the sad penguin’s relatives have died. Also, the black rim around the letter used to be an indication that said relative died at war or abroad. So yeah, some interesting Pingu lore right there.

It's not a walrus, it's a sea lion, the natural predators of penguins, hence why it's terrifying to Pingu.

As a kid, I had the DVD version of the original pingu, which I still own today. Some of these banned episodes are still on it!

"You don't want a goody-goody protagonist who can do nothing wrong. You want to see someone who can be just as big of a shit-bag as you."

Truer words about a Main Character have never been spoken.

My mother in law recently gave a book version of the episode where Pingu helps deliver the mail to us for my son. The page where the penguin is crying says "But at the next igloo, they delivered a sad letter to a frail, old penguin, whose cousin had died."

Things that make the walrus terrifying:
The walrus was stalking pingu before beginning to torture him.
The walrus is highly detailed and not simplistic, unlike other side characters.
The walrus behaves in a sociopathic manner, wanting to do nothing except seeing pingu suffer, whilst laughing away.
Edit: there was also an inaccuracy, The walrus was chewing the mattress, walruses do not chew their food

Regarding that penguin crying over a letter with sad music playing (1:20-1:36), on a Pingu BBC audio cassette from 1993, the narrator (Sarah Greene) explains that this particular penguin, named Mr Pengergrass, had recently lost his great-great-great grandfather, but he'd recover from it as he'd be intheriting his own iceberg.

Oh, and like many, I was terrified by that giant walrus - so much so that I was pleading for it not to be on the 1991 BBC VHS release when I first watched it. Pingu's Little Accidents (Pingu's Lavatory Story) did get a BBC VHS release in 1992, but with a certain scene shortened...

Knowing that walruses eat penguins leads me to think this was the show's version of stranger danger or something along those lines, but given Pingu's style It just turned into nightmare Fuel.

I remember that my grandmother hated Pingu. She found the penguin's voices and pinguinese annoying. But I actually really enjoyed it.

I think as the Walrus only appears in Pingu's dream, it looks like that because
1. We see the walrus as Pingu sees it: Terrifying
2. It's a nightmare, where often terrifying things get exaggerated