I used to do it too without thinking a few years ago, hand out lollies to strange kids that is, so I am not flaming or putting down anyone who does this.
Then I started thinking. "OMG", I said to myself, "what are you doing?" and self said back to me "Teaching kids to take lollies from strange tourists".
Self also said to me "Would you wonder up to strange kids unaccompanied by a parent, or responsible adult and give them lollies when you are at home?."
"No self I replied don't be silly if I did that in the supermarket their parent would probably deck me."
OK seriously now, while our motives might be above reproach, this is not true of everyone. We know that some people travel to SE Asia just to abuse kids and that a bag of lollies is the oldest trick in the world.
Self also gave me a good talking too about the terrible state of many Bali kids teeth and then went on to remind me about intolerances to artificial colourings and he hinted that maybe I want to think about diabetic kids.
I think if we want to continue to do this we need to ask a parent or other responsible adult if it's OK, just like we would at home.