its not a new thing, my grandma has always referred to babies as 'bubs' or 'bubba' or 'babba' i dont like it but i DO have nicknames for mine and call them allsorts, sausage, miss mouse for dd and yes i do occasionally call her princess 
i dont like hearing people refer to children/babies as sexy, thats just wrong imo, but cute, adorable, handsome, cheeky monkey, fat pants, sausage, chunky monkey etc etc, all names i have used for mine as babies, they all seem to be growing up fairly normally and have come to no harm, tho i do wonder if dd will grow up with gender issues as i often forget and say 'good boy' when she does something helpful, ditto going through all my childrens names before i get the right one for the child i am actually talking to, so nicknames are better actually it can mean any one of them depending on which nickname it is :)