Hello Kitty and Mega Bloks Forge Partnership

Mega Brands, Inc.  and Sanrio, Inc have signed a two year contract.  Sanrio owns the Hello Kitty brand, and Mega Brands make Mega Bloks, which are very similar to Duplos and Legos but are often themed with popular television shows and licensed characters.  The new toys will be available in North America.  Hello Kitty will join Dora the Explorer and Ni Hao Kai Lan sets to market to girls, an area where competitor Lego falls short.

It seems Hello Kitty is everywhere lately, on school supplies, clothing, shoes, keychains, and even card and board games.  The Sanrio store in the mall used to be the coolest place for a preteen girl to hang out.  I wonder if the brand is getting too diluted.  What do you think?  Is Hello Kitty awesome or lame?