We have always been fans of fairy tales. The kids love them and I never thought twice when reading out of a Grimm's fairy tale book. They're stories and not real. What caught my eye recently was an article/blog/story from somewhere on the Internet (can't find it anymore!) that was merely talking about how many of these stories present scary situations and characters.
I never really thought about fairy tales being inappropriate for my children. We always explain that they are just stories and are not real...but that they can learn a great deal from them (don't trust strangers, be careful what you wish for, be thankful for things you have, etc.). DH, who is the story teller in the family, always creates exciting and scary stories for the children to listen to as a prelude to the usual bedtime poetry readings (his latest creation is the "floor monster" story).
Scary stories are fun...but only when it's a "safe" amount of scary. I'm realizing that my children are not as sensitive as most. But I'm not worried about it. After all, my 2 year old's favorite movie as of lately is "Coraline," a movie that many say is too scary for young children. But what can you expect when the parents are huge Tim Burton fans?
Have fun reading something scary!!