The toddler is not able to choose whether they'd like to participate or not. It's an exploitation of young children and a waste of money. If parents don't win; they get upset with the child. Parents will also be encouraging "fake" or outside beauty is more important than that of inner beauty.
Toddler pageants do not cause any direct harm to the toddler nor does it have any negative effects on the toddler itself. It is true that most toddler pageants are for the parents entertainment, but there is nothing wrong with the pageant itself taking place. A toddler can be described as a child around the age of two or three. At this period in their life, their brains are far too undeveloped to comprehend what is going on, nor will they remember anything after the pageant is completed. Therefore, toddler pageants will have no effect what so ever on the toddler participating. With these pageants being only another form of entertainment for adults they are acceptable and okay.