I agree with you guys - I don't like seeing kids performing bellydance in public. Like Aniseteph said, if they want to take lessons for fun, that's great. I know people say that girls in the middle east learn from a really young age from watching their mothers etc, but you don't (or I haven't, at least) see them out in two piece costumes for the general public to ogle!
My first teacher got really into doing kids classes and started a kids troupe, and although she was always pretty careful with the costuming and choreography I never felt comfortable watching it. Having said that, I've been to watch my friends' kids performing in a dance school concert (jazz, tap, singing, etc) and I thought some of the kids were presented really inappropriately for that too. Maybe I'm just an old prude!:
