The show is a reflection of childhood trauma.Much has been made of Tim and Eric's 'dad humor'. This, when combined with frequent glimpses of child abuse and pedophilia, and occasional lapses into audiovisual nonsense, make the show appear to be an extended thesis on childhood trauma and PTSD.
The Tim and Eric universe is a science fiction dystopia.Every product is made by the Cinco monopoly, which shows that people are too stupid to keep this company from being a massive corporate success. The company's presence has lead to a rise of mutants and chimeras such as Chippies and Rascals. The familial system is shown to work similarly to a multi-corporate structure: Entire families can be taken over and placed under one "father". Child labor and slavery are still legal under local "Child Clown" outlets. Also, one third of the citizens are variable-gender clones of TV stars, Tim Heidecker and Eric Wareheim; Tim "Prime" being a result of an immortality experiment. On a positive note, playground technology is decades ahead of our own and sunglasses can be used to materialized matter from thin air.
The Tim and Eric universe is ruled by some sort of inhuman overlords with no conception of good entertainment...Or reasonable anything, really, which is why all the Cinco products are as ridiculous as they are. This is similar to the above theory, but instead of the intents being necessarily to control the population, the extra-dimensionals or whatever have just colonized the planet and the world is now just doing things their way.