I was born in 1970 so I am not that young either. I know exactly the Taxi character she was playing and they went for that? WTF? So is Penguin's dad, Latka?
They could easily went with Penguin/Cobblepot was the disowned son of a rich family that was kicked out of his inheritance or some such? It would have even made the scene in the jeep (not to give any spoilers away) more compelling if they knew Penguin from their private school or some such and always used to make fun of him, etc.