Even after Sketchbook poured black paint over the Yellow Guy's clown painting, someone still appreciated the work the Yellow Guy put into the ruined picture enough to frame and hang it up in the puppet's living room.
Also it could mean that the puppets don't hold any resentment against Sketchbook. As they were seen in various situations lying about the house
What are the puppet's favorite colors? The Red Guy likes blue, the Duck Guy favors red, and the Yellow Guy prefers green. In other words, their favorite colors are each other's hair (or feather) colors.
On one of the photos on the wall, the one representing the past has the three friends outside their house smiling at the camera. They clearly care about each other at least somewhat.
Despite how unsettling and strange Yellow Guy's dad, Roy, is, Yellow Guy still likes him and considers him a friend.
The fanon idea that Roy was the in-universe source of the 96,000 pounds out of concern for his son.
At the end of the third installment, the last name in the credits thank "all the kickstarter backers & Roy."
The fact that some of the DHMIS Kickstarter reward options include a drawing from Yellow Guy. It's nice to see that he's still being creative after Sketchbook's repeated insults.
Fandom example: On July 16th, 2014, someone entered a DHMIS Flock Draw room and started messing up the drawings. A few hours later, the person and the fans got to talking, and it turned out that the apparent troll had never even heard of DHMIS and just wanted to have fun with the Flock Draw. Long story short, by the end of the day, the fans and the person were drawing together, and the person was made an honourary DHMIS character.
As bad as the Creativity Explosion is, one of the quick shots is of all three of the puppets hugging each other and dancing in a circle. Aww...
The ending of DHMIS 3, where the Red Guy and Duck Guy find Yellow Guy and apologize to him, giving him an egg, and saying they love him.
Not to mention the meta fact that this time, NOTHING HORRIBLE HAPPENED TO ANY OF THE PUPPETS! All the bad stuff was a DREAM!
Unless the caterpillar+Yellow Guy hybrid at the end implies that Shignold raped him...
As one DHMIS blog points out, DHMIS 3 is the first time Red Guy seems genuinely happy about something, which is really sweet.
'Maybe I could hold your hand, and together we can understand...' That line is really, really sweet.
"Hehe! I love you too, furry boy!" Yellow Guy is so unabashedly happy in the woodland creatures' presence, although this makes what happens next all the more horrifying.
In "Time" Sketchbook is seen casually sitting in the Red Guy's room. When you think about it, it's sort of sweet and may imply that the puppets do actually care for the Sketchbook as their friend, even after its manipulative lesson in the first video.
When Yellow Guy comments that he'd like to be as smart as a computer, he has a brief Imagine Spot of himself with a gigantic brain and an adorably goofy smile on his face.
Becky uploaded a video to Instagram of Red Guy repeatedly opening a garbage bin with a log in it while chanting, "The log is in the bin." Surprisingly, it's quite heartwarming, given that Joenote who voices Red Guy is obviously trying to hold back laughter. It's like Red Guy has found something that's genuinely entertaining to him.
In Episode 5, Yellow Guy stops listening to the teachers because he misses his friends, which is a big step from Episode 3, where he ran out on them and almost joined a cult.
It's also implied at the end that Red Guy is still alive and trying to help Yellow Guy and Bird Guy from outside their reality.