Oathy said:
To make choices on sexuality and gender when they are this young is unnecessary.
I'm pretty sure that was exactly the point. Rather than tell them what they have to act and think like, they're leaving the option open. They're saying "you're too young to make up your mind, so we're certainly not going to decide for you".
As many have said, a lot of the "classic" stories about princesses and such are pretty fucking terrible. Almost all of them are about poor helpless women rescued by men. Very rarely does the woman have any interest aside from marriage (which will typically solve all of her problems the instant the ring hits the finger). As a good indication, try to find one of those stories that meets the Bechdel test. The odds are not in your favour.
The notion that children will be "confused" by things like this or won't know what to do when they enter the "real world" is complete bullshit. The only time children
ever get confused by these things is when adults tell them that they should be confused. The only real downside to this is that they're going to hit a point where they realise how fucked up the
rest of the world is about all of this stuff.
The gender-neutral pronoun is nothing new either - there have been efforts to create and use them in a lot of languages (many languages already have fully-grammatical gender-neutral pronouns) that have been going on for a long time. You're right that it's unlikely that the invented ones will catch on though. Still, I doubt any child would be confused upon learning that other people don't use the word - they'd just stop using it in the same way that anyone avoids using certain words around people they know won't understand them.
What they're doing should be applauded.