If this toy is supposed to represent a culture it does so badly. The house is very westernised and has little to do with middle eastern architecture or a way of life in warmer parts of the world, the thrones are patronising especially in conjunction with the donkeys, so I don't even buy it as culturally relevant.
Representing a culture cannot in itself be a virtue, it depends on whether the representation correctly done (in this case it's patronising and inaccurate) and whether the culture is worthy of representation (in my opinion the extreme form of dress in these dolls is associated with extreme religious views which are associated with a negative view of women).
I would also be disturbed by toys that had, for example, a very surgically enhanced mother figure (ala Nina Minaj), a toddler all dressed up for a beauty pageant, a little girl in a dominatrix outfit for Halloween, etc. These are not role models I want my daughter to aspire to.
Consider this, I would be OK with a toy set of a hospital set up for a tonsilectomy but not one depicting a shaman's tent set up for female genital circumcision. I accept FGC takes place in other cultures, I also accept that a small minority of women chose it of their own free will, but I still don't want it as a role model for my daughter.
Dogie Doo seems to encourage responsible dog ownership, nothing disturbing about it. Make-up for toddlers much more disturbing.