Gaylene - I think the difference between these two sites is fascinating, but I think it also has a lot to do with price point in this case. When you shop in the children's sections for similar priced items to the ones on the US site you get a style that's not so different, IMO. At least here in Germany.
I definitely prefer the more classic wardrobe items to all the cheap glitter and prints and I would want to dress my children tastefully, but the way this girl looks makes me uncomfortable. I think it's mostly the ballet flats (I agree with Julie, not good for growing feet) and the belted trench that looks like it's extremely fussy and done that way by mum who will adjust it for the right 'look' every time her daughter fidgets. The rolled hems don't bother me that much. I think you can dress your children with style and still let them be kids, it's possible.
But maybe I'm biased because I was one of the children that were never dressed up by their mum. She took care that I was dressed appropriately for occasion, weather and modesty and the rest I could decide myself. And I was a little tomboy, most of my friends were boys.
I guess I just have a problem with the idea of a child in an 'outfit' that is 'styled' in some way. That doesn't mean that you can't buy tasteful or stylish clothes for your children - they just have to be practical, age appropriate and enable your children to be just that, children.