I think that parents should be smart and use some rules(don't let children go up to houses by themselves, only go to neighbors' houses that you trust and know well, etc), but I think not allowing any sort of participation is a little extreme. My friends and I used to love dressing up and getting together! My parents always took me and my siblings to our church's "Fall Festival" which was full of fun games and activites you could do to win prizes or candy or just have fun(and usually with some sort of Biblical theme). To me, it was just like going to a birthday party and spending time with your family, nothing more. Also, it was fun to go stop by a friend/neighbor/family member's house so they could see you all dressed up. It's a day in one's childhood that, if the parents handle it correctly, can remain innocent and sweet.