What is the value of traditional literature in its contribution to children's literature?

"Traditional" literature can be defined in many ways, and
each of them makes a contribution to children's literature.  If "traditional" refers to
folk tales and legends, children's literature has derived all kinds of elements from
it.  The earliest folk tales and legends were not necessarily written for children but
easily lend themselves to that genre--think Paul Bunyan and Johnny Appleseed.  If
"traditional" means "classic," children's literature relies heavily on the themes from
classic story lines, such as The Hobbit and Great
Expectations.  If "traditional" means "historical," children's literature is
full of Harriet Tubman, Abe Lincoln, and Paul Revere kinds of characters. If
"traditional" refers to literature which is moral and even spiritual, certainly those
influences can be seen in children's lit, as well.  Ironically, of course, some
literature written for children (such as many of the fairy tales by the Brothers
Grimm) is anything but moral.