Yes, Jane, the other meaning has been around a long time. But I think it's used more today and kids are aware of it younger and younger.
Gizmogranny, DD was foolish, IMO, to blame you for GD's recent use of the word "pussy" since you haven't even seen her for months. Probably GD remembered it from the past or just likes that word. Or maybe she heard someone else say it. IMO, DD was just expressing her frustration. But yes, I agree w/ the poster who said she's just trying to protect her child.
Meanwhile, I don't think anyone should stop reading classic nursery rhymes b/c of a change in word meanings or whatever. But if parents have ASKED a GP not to use this/that word, IMO, the GP needs to ask them, in return, if it's ok if they read nursery rhymes w/ that word. Chances are, they'll say "yes." But if they say "no," I'd avoid those rhymes.
Words of 7 letters, (new) 2 changes allowed