I am sorry you are in the middle of this C.Ann...but what shocks me more than anything in the situation is the fact that your DD and SIL are controlling the gifts their child will get. I can understand from the get go saying, we dont like X brand of toys so please dont purchase them, but to tell someone not uh no way will you buy my child that toy, take it all back and exchange it? That doesnt seem very gracious. I was always taught that if you received a gift you were not pleased with, you thanked the giver, because it is the thought that counts. I have 4 children, and while there are certain things I would prefer the family did not purchase for them, I would NEVER say X toy is FORBIDDEN in my home, and if you buy it you will take it back and exchange it for something that *I* think is more appropriate. What ever happened to Thank you so much, and exchanging the gifts on your own time?

Trust me, I am know Ms Manners, but seems to me that your DD and SIL are being just as rude to your MIL by telling her she must exchange the gifts. She was being passive aggresive by purchasing them, they are being more direct. It seems so wrong to me. But what do I know.
BTW I have no problem with the Bratz dolls and I think it is so silly that so many people are against them. I think it is what some people see through adults eyes that have them in a tizzy, but your avg 8-10 rd girl is looking at thses dolls through a childs eyes and is not seeing the things some of you have pointed out. Example, when I was a kid and even now, my favorite movie EVER was GREASE. Do you know how much sexual inneundo there is in Grease? I never ever ever picked up on it until I watched it again with my "adult" eyes and ears, because I knew nothing of that world. Ever listened to the words of Greased Lightening? Never once did it hit me the wrong way as a kid, again not until an adult..
Anyway back to the dolls,to see girls dressed and made up like that , the DDs of today do not need to look at the BRATZ dolls on the shelf, but look to the left or right and see one of many young women of todays times dressed like that. That has been around since way before Bratz dolls.