Yeah a young kid would have his eye out with the old corners.
I think it looks a lot better now anyway, the roundeness makes it look a lot more realistic. And I think makes the textures even look better.
I don't know if your crease problem is that much of a problem. It isn't that noticible and as the room's going to be in a fair bit of darkness and the toy probably in the background of the scene it shouldn't be noticable. Even if as you say the Postman Pat toy is going to be illuminated more.
P.S. I'd have suggested rounder if I'd heard of it!