While I find all the “family friendly” rules to be a bit annoying, if I had a kid and they just wanted to participate and get some extra candy, I’d make it happen for them.
I also get the impression this is perhaps an event geared towards very young kids, and there is always somebody who takes the Halloween scariness or gore a little too far, hence the rules.
There are neighborhoods where it’s not possible or feasible for kids to go door-to-door. I’m actually heartened by the fact that my old neighborhood where I grew up is back to having lots of kids going door-to-door after a pretty steep decline in the 90s, but my old neighborhood is also very walkable with a lot of houses close to each other. I’ve been in a lot of other neighborhoods that just aren’t walkable in that way - the kid could maybe go around his gated community or up and down his cul de sac and that’s it.
I like the idea of the kids dressing up as saints or Bible figures. A lot of the churches have the kids doing that already for All Saints’ Day. One church in my area had the school kids dress up as saints and have a little procession through the church before the Mass, which was a great motivator to get the whole family to the Holy Day of Obligation Mass, and the costumes were cute.