I have always loved fairy tales. Always. And my 3-year old going down that path doesn't bother me at all. We found another telling of Rapunzel that we both just love.
Falling for Rapunzel by Leah Wilcox is ADORABLE! It tells the story (in fun rhyme) of the prince trying desperately to get Rapunzel to let down her hair. Unfortunately, way up in that tower, Rapunzel can't hear so well! She throws out a wonderful array of objects that finally culminates with pushing out her maid -- which makes the prince happy. He got something for his efforts!
This is a simple enough book, especially with the rhyme, that my 3-year old reads it with me. And we have read this one quite a bit! Well worth your library trip -- I'm thinking of adding it to our permanent collection.
But I do love fairy tales.