Callistemon21
Who decides this on behalf of us all?
To some extent it's public opinion. Some things don't need policing in the sense of being banned. In the unlikely event that I wanted to wear a T shirt (unlikely in itself 😉) with a golliwog on it, I would fully expect to get flak from people in general and children in particular.
Princess Michael wore the Blackamoor brooch and it was considered, rightly IMO, inappropriate, and she got a lot of bad press. Who would wear a fur coat, even if they wanted to? There are lots of things that people do and don't do because they don't want to risk the disapproval of others. I know it's not always enough, and that there are always going to be those who think it's clever not to care about public opinion, but most people want to fit in.
Having said that, probably that's what's happened here, and focus groups will have shown that people are less likely to want to read stories about fat people or 'gendered' Oompa Loompas to their children. To keep the sales figures up, the books need to change to fit in with those changing norms. I wasn't made racist by reading Little Black Mambo, but I wouldn't have read it to my own children - this is just more of the same, I think.