While I agree with not stereotyping in limiting children based on gender - ie you can't do that you're a girl, etc, etc, I really do not see an issue with dressing girls in feminine clothes and boys in masculine clothes, they are girls and boys, they are different, that is how we are made. Children should have a choice once they are old enough with in limits, they can choose their own style.
Why can't we embrace that we are different?