If your kids are at an ordinary age to be interested in Barbie, I recommend not being "horrified" by anything they do. (That doesn't mean you have to give them Barbie dolls.)
Yeah, good point. I suppose it would be more accurate to say that I'm horrified by Barbie. It's like they're trying really hard to invent more ways for her to be shallow and ditzy.
Nevertheless I let my daughter consume the Barbieverse in moderation and wear her Princess dress to school every now and then. I just try to make sure she sees the world through other lenses as well.