just a note on the Osh kosh thing, the reason it is cheaper in the States (available in Wal-Mart, I think) is because the stuff was made with thinner, lower grade material. The stuff for the European market was made in France until very recently and used better quality material. This was because Osh Kosh pitched itself as a "designer" label in Europe but not in the USA. The sneaky people then tried to switch to the US standards but still charge designer prices in europe. It backfired horribly. They now seem to be treading a middle road.
As for waht we're teaching our kids by buying them designer labels, I think it depends so much on why you do it. I buy designer stuff occasionally because there's an item I love, there may be bargains in the sales, the quality is often so much better, I like the little detials that are on the clothes....I also loathe most of the clothes that are available in high street shops for little girls. DD is not quite 3 but tall. If you go into next their 4+ clothes for girls are mainly mini-teenage styles, stuff with slogans all over it, J-LO tracky bottoms etc. I don't think it's appropriate. I think stuff like this looks tacky. Nevertheless most of DD's stuff is what I'd call "top-end" high street from an American chain called Gymboree, they have stock in quite early but change "collection" every few weeks so things get marked down very quickly.