Not really a good story for children, being that the lost boys are Dead

It's an interesting theory but it's wrong. Eventually Wendy, Michael and John go back home so they can't be dead. And the Lost Boys are from different eras; that's why they're dressed so differently. Some are dressed more modern and others (like Toodles) look like he's from the 1800s. Peter plucked them from their time just like he did the Darling children and in Neverland time stands still, so they lose track of it and don't realize they've been there so long. It's the same reason Peter can remain a child--he doesn't know he's been there so long either.