Obviously, parents need to chill out and let the kids do what they like. An advert for more screen time has rarely been more obvious.
The most obviously manufactured urban legends are often the most entertaining. Not always scary, but certainly a measure of caution would be included.
The Russian Sleep Experiment being a personal favourite of mine from Creepypasta, they endure not because they happened, but simply that the human animal is fucked up just enough to allow it to, or in the most insidious cases, with malice aforethought, be directed to become real.
Grimcutty is an altogether different kind of animal, valid only in the same way that Slenderman or Sirenhead are perceived. Not even real enough to be classed as folklore. I imagine more people believe in leprechauns or fairies. At least they're potentially beneficial and philanthropic, rather than just there to scare the bejeezus out of you and little else.
As I've been heard to mention before, the nature of horror can have a lasting effect on the weak-minded. I was mentally tortured by Poltergeist and The Exorcist when growing up. They stayed with me long after the final credits rolled. I think I was about eleven. Not so these days. This hardened, unfeeling and soulless nihilist has faith in nothing, be it good or bad, but fresh young impressionable minds? Well, come this way...