I personally can't stand the diaper-revealing style! Not that I see anything sexual about it, I just don't think it looks good.
While I think there are things that adults can do but kids can't - a very, very limited number of things - I think it's always possible to find a compromise. Like maybe they can't drink alcohol, but the next day they can go out to their favorite restaurant and order whatever they want.
This is not about clothes, but has anyone noticed that adults often try to make babies' interactions with each other all about sexuality? People who have girls often hear comments about "Oh, the neighbors just had a boy, he can be a boyfriend for her!" Why can't they just be two babies who play together?
I saw this card where there were babies in a hospital nursery, with pacifiers, of course, and this baby boy is leaning over his crib saying to a baby girl "Hey, I know where I can get you some milk!" The girl is wearing makeup, BTW. Inside it said "Congratulations on the birth of your new ladies' man!" Disgusting, IMO.
What if it were reversed? Would anyone buy a card that said "Congratulations on your little hot mama?" or that showed a baby girl with boys all around her bringing her things that said "She's got the men working for her already!"