Answer to why there are always new recruits & where goo come from!

[TUFOM]

Really simple drawing of kerbal life cycle. Not to be taked seriously. =))

[Dun Kirk]

is that radioactive squid in the trailer how krakens are made?

[TUFOM]

That is what I thinked about it. =)

[Cydonian Monk]

That almost follows Max's theory from last night's Twitch DevStream.... Scrape up the Green Kerbal Goo after an accident, toss it in an EZ-Bake oven, and out pops a new Kerbal.

[Moonfrog]

sounds plausible, is unfortunately one flaw you need to account for. Not for the creation of mystery goo, that is perfectly explained by your theory it is also backed up by a quote inside the game(The goo feels right at home(while it is in space)). The flaw is where does the goo come from before the kerbal is reanimated? Or where does the kerbal come from before it is turned into goo? Unless the goo is alive and replicates then turns into multiple kerbals rather than just one kerbal, then that would solve the flaw.

I think your theory is right, seem to be clues pointing towards something like this in the game. Next question is, where do spacesuits come from?