It was truth though wasn't it? Little kids used to be used as slave labour. Orphans making a living selling matches... pick pockets... it was true then.
Its still true in many parts of the world. I dont see why that should be edited out? At very least it would open a discussion on childrens rights.
I liked the story of the little match girl. Yes it was very sad and made me cry. But it also made me think about children and their lives and how childhood was in the past . It made me appreciate a relatively happy childhood. And made me empathise with children who didnt have happiness or secure families.
I would argue that children need to feel all emotions.
Keeping children wrapped in cotton wool is not all its cracked up to be. It insulates them from reality.
Reading a story about a child whose life is not all roses is a way to learn empathy. It may be about how different life was in the past and how some children still have to live like this. It makes children think beyond themselves. Nothing wrong with that.