Hmm, I guess it kinda makes sense, about kids being kept from death in other ways at that age, but seeing it on Halloween in a strange context.
Can't say I ever remember fearing Halloween, i was usually amped up about getting candy! Then my father would momentarily confiscate our stashes to remove the PB Cups - a "Dad tax" if you will... maybe he was trying to teach us the ways of the world of taxes?! Or he has a weakness for reese's.
I kinda remember my younger brother being a little timid when he was still quite small, maybe 5ish. But mostly he just complained when it was too cold out that night!
I think a lot of people try to shelter their kids a lot. There's some awful things thye definitely shouldn't be aware of at some ages, except a small understanding, like don't go alone with strangers, because that potentially helps them. But if your kid is spooked by costumes and decorative props, I would think you could use that time to comfort them and assure them it's not real, then you could use the experience to kinda lead them into talking about death and sickness, in a way they could "get" because they'd seen the stuff in October?
I think it all depends on perspective, if you see it as evil and emotionally-scarring, well it probably will end up that way for your kids. If you try to not terrify them, but allow them to run amok and have fun with it, they'll be better-adjusted. IMHO.
WIMPS! 