Fancy Nancy does two things very well. First, it uses high level vocabulary in an effortless manner. The use of new vocabulary is defined within the book and is great for young readers. Second, Fancy Nancy sets up the story of a child that many of us know, or have been. So many girls go through that phase of wanting to be fancy...and I think the solution to my original problem might be, don't give the book to a tomboy.
So for all those fancy kids out there, go read Fancy Nancy, an excellent children's book.
Note: I also reread Pinkalicious and I still did not like it.