Speaking of misconceptions from this scene, before I saw ROTJ in HD I always though that this pillow was a part of Jabba’s body. When you see it in VHS quality it looks like some kind of weird flesh-bulge and it always grossed me out as a kid, especially since it looked like Salacious Crumb was partially inside it like some kind of marsupial pouch.
Seems this pillow was added to cover up the puppeteer. To bad they chose a colour and pattern that, at least in HS quality, really blended in with Jabba’s leathery skin.
