Agreed. Far too much mollycoddling these days. My own children (now 13 and 17) have been ruthlessly and mercilessly terrorised by yours truly as far as introducing them to scary stories is concerned (with some moderation from my wife - hahahahaha!).
Great article by the way. I would add that I don't consider any subject matter off limits for children, whether it falls under the horror genre or otherwise. I argued the case here, if you're interested. :)