I read an interesting article in Aftonbladet about political correctness in children's literature. As usual my source is in Swedish, so a minor explanation may be in order. Basically the article concerns older works, and how time has made them politically incorrect seen from a Swedish point of view. Mostly it is the ethnocentric angle that is touched upon, be they ethnic minorities in Sweden or simply people from anywhere else.
The author points out that the world will hardly go up in flames merely because your children read a story older than a few decades including terminology and views reflecting the time when it was written, but she also advices parents to use those very books to base a conversation about uncomfortable topics around.