DD (3.5) is make-up obsessed. She watches me put mine on the morning and wants to help. I let her do my lipstick for me - and she's very good at it. She'll then put it on herself - on the understanding that it comes off before we leave the house.
She desperately wanted a pink leather lipstick holder with mirror that she saw at the Tower of London and begged for it for her birthday. I said no. When she was still asking about it over 3 months later I decided that she obviously really wanted it rather than it being the thing of that particular instant so I popped back and bought it and got a pale pink Lypsol from Tescos to go in it. She was thrilled and you can't even see she's wearing it - so much nicer than lipgloss.
No way is she having powder or eyeshadow for quite a few years - I want something slightly forbidden to give her when she's 10! But, I don't want her plastering her beautiful skin with anything other than sunscreen and I'd never put mascara or eyeliner on her. Even for parties there is no way she is having make-up other than the facepaint variety.
Nail polish is my exception. She had a terrible nail biting habit and I have cured that by saying she can have a manicure on Saturdays if she doesn't bite them all week. I paint them a very pale pink so you'd barely notice it was there. It has been hugely successful. I was a chronic nail biter and really didn't want her to get into the habit.
I wear and enjoy make-up and see no problem with it. I would prefer her to learn to wear it properly in a less is more manner at an appropriate age than end up like my sister who rarely wears make-up and makes a dog's dinner of it when she does.
DH and I are still somewhat in shock to have a dolly-loving sparkly pink princess in our lives... apparently her ambition in life is to have a boyfriend who will buy her pink shoes, a pink bag and take her dancing. When she eyed up a diamond ring in a shop and I suggested that she needed to work hard at school and get a job so that she could buy one she looked totally disgusted and said that she'd just get a boyfriend to buy it. So, I think a bit of nail polish is the least of my worries!