It was originally intended to be a children's story, wasn't it?
Well, in the same sense that the original Little Mermaid story was, I suppose -- you know, the one where every step she takes with feet feels like walking on knives, and the prince doesn't marry her and she turns into... sea foam, I think? And that's a happy ending.
Well, it was a Disney DVD so I sort of thought the Matchstick Girl's story would be likewise Disneyfied. The Little Mermaid gets her man by sacrificing her voice, instead of giving up her comfortable life, her loving family and enduring stabbing pain with every step to dance at the wedding of the man she loves--who won't give her the time of day. Only to die in the end.*
The Little Match Girl's frozen corpse at the end of the cartoon wasn't upsetting for ME because I'm familiar with the story but I think younger kids would ask what was going on if they saw it.
*Yes, she gets an opportunity to gain a soul as a Child of the Air, etc., and all that inspirational yaddacakes. Which, I suppose is the meaning of The Little Match Girl--who sees wonderful visions of love and warmth by burning her matches and whose soul is taken to heaven by her dead grandmother in the end. Heathen that I am, I just see frozen corpse and seafoam at the end of these stories.