Geoff, you don't say where you're from, but I'll presume Australia. Yes, good kids stuff is hard to find in Oz. That said, I think the view has always been that breathability (in rain gear) is less important for kids - but the real reason is probably cost. But fleece is fleece: my Japanese nephews and nieces have been handing down some Kathmandu fleece we gave them more than 10 years ago, even though there's hectares of the stuff available over there.
If you're serious about it, MontBell does good kids clothes, as do a number of European companies like Jack Wolfskin. Getting them in might be expensive though.
But Cabela's is cheap: