I agree with you that OP is being overprotective, but its natural that we all draw slightly different lines about what's appropriate when.
FWIW, when (spoiler alerts) the little girl gets her feet cut off in red shoes my 8 and 10 year olds were shocked at the turn events, but hardly shaken. Likewise when the little match girl died in the cold they were sad, but not permanently so.
It's the same deal with grimm fairy tales, or even pinocchio (pinocchio gets hanged).
FWIW, when (spoiler alerts) the little girl gets her feet cut off in red shoes my 8 and 10 year olds were shocked at the turn events, but hardly shaken. Likewise when the little match girl died in the cold they were sad, but not permanently so.
It's the same deal with grimm fairy tales, or even pinocchio (pinocchio gets hanged).