Yes it's based on the source material for DT and more importantly the material for the original PR, which was the kind of the golden standard for appealing to children.
I'll agree with Chris on that part. Just because it's a kids show doesn't mean they have to make the designs just for kids.
The show is FOR kids. Other than parents, the bulk share of the audience are kids. Adults are not the main audience. Its profitability comes from 1) kids tuning in and 2) persuading their parents to buy the merchandise. It's not like late night anime where they can make a profit by charging exorbitant prices for dvds and figures from otakus.