I used to have this movie on VHS when I was little, and I just watched it again with my little kids at work. I wanted so bad to turn off the movie altogether, but did not want to offend the other teacher that chose it. I used to really like it when I was little, but I know I just find the whole film not for kids that young, regardless of it's G rating.
First off, Tinkerbell's dress is way too short. Another thing is all the insulting and racist language. Another is the racist "Red Man" and the Indians. Not to forget the mermaids, two or three don't have shells covering their breasts, they just have their long hair covering them and blowing around. Plus they are pretty much sirens, acting all sexual like trying to get Peter.
The way Wendy, John, and Micheal's father treats them and their dog Nana, is really cruel and scary, while their mother is much too sweet and doesn't do anything to help the kids, or Nana.
This movie is very well done, but not for little kids.