Long Answer:
Well, I worked on Caillou (Season 4) and got the chance to ask that very question to the show's creator. The answer I got was this:
"Caillou is bald because he was bald in the 1st season. When we (the executive staff) were deciding on doing a 2nd season, the decision was made to keep him bald (for merchandising brand purposes), but to have him grow hair by the third season. A year went by, and a new executive staff were discussing the 3rd season. Someone drafting the season bible (what the directors and designers go by when making a show) asked why Caillou is bald. A senior member, thinking that he was asking about the previous seasons, replied that Caillou is always bald. That directive was written into the bible, and shipped out. By the time the error was noticed, most the 3rd season was well into production, and it would have cost massive amounts of money to correct it."
When I started designing for the 4th season, I was told that Caillou had remained bald (I have several season 3 designs that show Caillou with hair...it's much like his fathers) because of the toys and games out there in the market. Re-launching Caillou with hair didn't make financial sense.
So the short answer is: Money.
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