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I guess it depends on whether the "reader" is the "audience."
We started reading the Harry Potter stories to the kids when they were 5 and 7 years old. And while we could have stepped out of the story to explain cultural differences, we were all much more interested in conveying the story. And for my daughter, especially, who was 5 and fell completely in love with the story, it was helpful to tell the story in American terms that she recognized.
As it turns out, she's now in college and still loves the stories. And now it makes sense for her to re-read the stories with the original British terms to get a better feel for the original story and setting.
But, when she was 5, that wasn't our primary goal.
BTW, I have no problem at all if an American story (not even necessarily an American children's story) is culturally translated for a British (or Canadian, or Australian, etc.) audience.
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