Definitely saw some kids chicken out in the queue around the gem room. But all the kids that I saw parents forcing onto the ride despite being scared seemed to love it by the end. I think the “scariness” of the theming is probably creating some great core memories.
For me personally a lot of my fondest childhood theme park memories were when I conquered a ride that scared me. Standing in the Tower of Terror queue with the car launching over the top of you was terrifying when you didn’t know what sort of experience you were getting into. But once you rode it once that fear turned into a feeling of such accomplishment.