Yes, this is very regressive.

Also it's made me wonder: Are newborn babies now being wrapped in blankets that are entirely blue or pink depending on the children's sex?

In the US and many other countries, it's been the custom since the 1950s - when hospital births became commonplace - to wrap or swaddle newborns of both sexes in unisex flannel "receiving blankets" with blue and pink stripes: https://www.popsugar.com/family/Pink-Blue-Striped-Hospital-Baby-Blankets-18286453

https://doyouremember.com/89521/history-worlds-common-baby-blanket

Before that, my understanding is that receiving blankets were usually just plain white, yellow or whatever was the customary colors and patterns of soft cloth in a particular culture. Baby pics of my parents, born in the mid-1920s, show them in white baby blankets and white clothing. Both also had long hair and wore "dresses" until school age, when my dad had his hair cut to a chin length bob and "graduated" to wearing short trousers that stopped just above the knee.