I think I'm just too cheap, lol! We have a salon here that does that type of thing ("Sweet and Sassy" - ugh, even the name is annoying) and more than anything, I wonder why you would pay that kind of money to get a child's nails painted, or hair done. For me (and again, maybe I'm just cheap)it's not so much about the nails as it is about the constant gifting/entertaining. It's about the kids who go to the 8th grade dance and want a limo and a professional updo. We aren't poor, but my kids get presents twice a year: Christmas and birthday. They get clothes if they need it. They don't whine when we walk into Target or get $200 jeans.
As far as the actual makeup, playing with it was pretty rare. I don't think they viewed makeup as a toy. They might paint their nails occasionally, or get a lip smacker, but not much more. They were allowed to pierce their ears in middle school, when I thought they were ready to take care of it. They were allowed $20 towards hair cuts. If they wanted to color their hair (they're both in college now) that was up to them, but it was their money. Beyond being "adult", it just seems too indulgent to be taking an elementary child for a manicure. Good grief - will kiddie facials be next? Kiddie massage? As far as how it affects them down the road, I think it really depends on the kid. One of my dds is a makeup maven (talented artist, so that might be it??) and one rarely uses it. One is a skimpier dresser, and one is very business like. When dd20 was in HS, she went on a mission trip to NYC, and she and a girlfriend bought thongs (yeah, not making this up - apparently in between helping the homeless, they went shopping). At the time,I threw it out. Now, I'd probably pick my battles. But I don't mind saying no, even if I am the only one.
Theresa