Awwwww, I thought she was adorable! I would never do that myself, because I'd rather have vacations and put the money into a college account, but I'd hope they'd already have the money for that if they can afford to put her in a pageant.
I didn't understand the need for a wig if she didn't want it. That was the part I was really uncomfortable with. That part I just didn't get at all and IMO was crossing a line.