Maybe I've missed something...?
Though out of print, one of my favourites is My big book of fairytales: a treasury of favourite stories for children, printed in the mid 80's. It's a 'best of' the Story Teller series, consisting of 73 fairytales illustrated by various illustrators. The fairytales themselves are beautifully retold - not too scary but not too glossy either. Second hand (online) booksellers have plenty of copies for only a few dollars.
If anyone can recommend a compilation of fairytales they love, please let me know!