"We've given the children everything they ever wanted. Is this our reward-secrecy, disobedience?"
The parents have given the children all they have ever wanted and the moment they said "No," the children then get mad and upset with they're parents. Now they have no right to tell the kids what to do and what not to do.
"The house was full of dead bodies, it seemed".
"Where before you had a Santa Claus now they have a Scrooge".
"...cheeks like peppermint candy, eyes like bright blue agate marbles,...".