Well, my two little granddaughters are still very excited about Halloween, and are looking forward to their costumes. Sometimes their mum and I have made them but sometimes we don't have time, and then they have something bought. This year, I think their costumes come from Sainsburys, and they're both on the zombie theme - one is a Halloween princess and the other is some sort of skeleton. They're a bit more gory than the things we made for them when they were toddlers - such as kitten or fairy costumes - but they're getting to the age where they like to be a little bit scary and a little bit scared. I don't think it does them any harm to dress up in this way. I do agree, though, that all costumes should be made of fire-retardant material - we are very careful to keep the girls well away from the pumpkin lantern and no other candles are allowed.
The rest of our grandkids, now living in the US, used to dress up for Halloween when they were little and lived here but now only the younger two bother with costumes. The adults, though, seem to take it more seriously over there. My daughter and SiL have to go to a costume party every year, organised by his company, and she says some of their friends spend a fortune on Halloween decorations. More than they spend on Xmas, in fact.