This mom's blog about twins Hannah and Sophie gives another perspective on the children's sizing problem. I feel her frustration, and I can understand because as a pattern maker and designer I have difficulty getting the sizing right too. The comments on that particular entry suggest she start her own business selling clothes that fit.
If she were to start a business selling toddler slim clothes, she would discover the same difficulties as other children's fashion designers. Sizing is a big problem that falls all over the anthropometric map. Adult sizing is rather stable in the sense that adults reach a size and tend to stay there - disregarding weight gain or loss. You can categorize adults into sub-groups with similar body proportions and sizing. You can do that with children too but the sub-groups are transitional. Children grow as they age, changing from one group to the next in progression. Ideally, children's clothing allows for that transition in a smooth fashion. In reality, children will occasionally have clothes that are too short, too long, too wide, etc. It is impossible to accommodate them all because they don't all start from the same place. Genetics and individual circumstances play a big part.
This not offered as an excuse for the industry. Surely some creative DE could provide clothing for Hannah and Sophie that is comfortable and fits well. I suspect that the twins were premature because of TTTS. The girls appear to be thriving and doing well. Children born prematurely are a unique sub-group that falls outside the norms. They tend to be smaller and grow differently than other children. It would be an interesting challenge for someone to come up with a product line to help them. Any one up for it?