This is a good thing for the majority of people, since the majority of people in children’s publishing are very nice.
It’s a not-so-good thing for the relatively few people who don’t think they have to be nice.
Perhaps, for instance, you hear (from a reliable source) about an author who has done something that was at best unprofessional and inconsiderate, and at worst sneaky and unethical. But she was a brand-new author, and you like to think well of people, so you assume it was a momentary lapse, and she’ll learn better behavior soon.
And then you hear (from a different reliable source) about the very same author and how her agent got her to do something that was sneaky and unethical and no two ways about it. Something which would, no doubt, displease her publisher quite a bit to hear.
At this point you're deeply afraid that this author has not understood something fundamental about the children's book industry: word gets around.
No doubt this author and her agent figured that no one would find out about their behavior, or if someone did, it wouldn’t matter because it’s making money that people care about, and how you do it isn’t really important.
Ahem. (This is me leaning into the microphone:) Which is wrong.
One day, perhaps quite soon, this author and agent may find a themselves facing a bunch of resistance from the people they’d most like to work with. And it’ll be a big damn mystery why, won’t it?
Because it’s a small, small world.