I would not sanitize them indeed, but I would not just tell my kids (or anyone too young to grasp historical context) the raw versions either. Just like the bedtime books I grew up with, fairy tales (apart from extreme violence) can contain racism and very often contain sexism (very strong gender roles for example). I don't want my kids to see such stories as examples. When I read my old childhood books I often need to catch myself, or explain a context to my children I'm pretty sure they are unable to grasp. We've started buying more modern books.

I.e., in one example in the Dutch Children book "Pinkeltje" he meets an African tribe and the language to describe them is using terms like devilish, undeveloped and black almost as synonyms.