If you are looking for a sweetly illustrated collection of fairy tales with many, many illustrations, but definitely not Disney, I would recommend Mary Engelbreit's Fairy Tales: Twelve Timeless Treasures. The book is currently bargain priced at Amazon for $7.80 in hardcover and I am tempted to pick up one or two gift copies myself.
This one is "safe" for the preschool set and will also satisfy parents who are concerned about being too scary too early because this book isn't. Engelbreit brings her brand of humor and sweetness to the illustrations that are not generic like many of the collections that children tend to receive instead. (I think of them as grocery store books.) I think books like this make great bridges between the unadulterated original tales that make parents wary of fairy tales. And the illustrations are vibrant and profuse throughout the collection. And the book should especially appeal to the little girls who adore Disney without giving them all of the Disney merchandise if that is important to you. (I know people to whom it is.)
From Engelbreit's notes:
I wanted to share these timeless stones with children today, but as I read and considered which to include, I realized for the first time how many of the stories ended with the message that marrying a prince is the solution to all of life’s problems. If only that were true! Knowing how independent and free-spirited my daughter Mikayla and her friends are—and wanting to nurture that—I felt it was important to bring out the spirit of dashing adventure in the richly imaginative world that I’d enjoyed as a child. So I decided to edit some of these endings a bit, letting children know it is okay for the princess and her frog to remain friends or that a prince can help with the household chores.
After choosing the twelve tales, I had fun dreaming up the costumes, especially the ball gowns. I based the clothes on styles, decorative patterns, and fabrics from different periods that I like, especially Elizabethan and medieval times.
You can preview the book on Amazon to see the full table of contents and many more illustrations. I shared just a few here to give an impression of Engelbreit's style.