This appears to be a PG rated movie. This is nothing new. Let's take a step back nearly 25 years and check out things that happen in 'The Nightmare Before Christmas', a movie with the same rating:
Finkelstein makes himself a female doll. A detached leg is used to seduce a villain, whom promptly begins to engage in foot play. There is a torture chamber crossed with a casino, where the casino games determine the level of torture inflicted. There's a skinned head, various detached body parts, brains, etc.
Let's go back farther! Watership Down - 40 years ago.
Doe rabbits fancied by one of the villains are offered up in compensation for his efforts. References to the needs of doe rabbits to sustain the warren Various bits of violence/gore with the rabbits, including a rabbit choking on a snare and coughing up blood Mild profanity - use of 'Damn' and 'Piss', with Fuck replaced with 'Frisk' in several instances.
>There is just no way this stuff is age appropriate. I don't care how far the Overton window has shifted.
PG as a rating is specifically not any sort of indication to age appropriateness. Emotional development of children in the ages in question is going to vary drastically, and the whole point is that it is then suggested that the parents, knowing best what content their children will be able to handle, make the decision. The maturity level of content in PG movies has, if anything, dropped over the years.
Note that I am not questioning your choices on what you find appropriate for your children, just your interpretation of what PG means and whether or not the Overton window has shifted.