Earlier quoted context omitted.
I've been split on this. On the one hand it is a bit unpleasant and can be traumatizing, and we tend to shy away from unpleasant things, but on the other hand lots of generations grew up on Grimm's Fairy Tales and Hans Christian Andersen fairy tales and learned a bit about how difficult life can be and the consequences of moral failings or lack of hard work. It is important to prepare children for the fact that life…
I don't mind scary stories for children, especially when told by people who know those kids and can easily judge the effect. But, the generations growing up on that and them taking deep moral lessons from it point is overstated. They were collected or written and then popular collections of folklore in some part of last century. They are not exactly bible, many of those stories don't even have some kind of moral less…
Digging a little deeper, you find tons of variants of stories, and discover all sorts of new ones, hybrids, seemingly incomplete ones, different levels of embellishment, darker and lighter. And some do have morals, but a lot of them are just things happening. Some motifs just seem to stick. And folk tales were not primarily meant for children either—we tell kids campfire ghost stories all the time, and don’t think so much on what they teach. We just like them.