Carlie was harmed. It cannot be innocent. He lied to her and told her that her father was in a horrible crash, then kept her from her hurt father, hidden in a place where she had no contact with anyone, could not have access to anyone through a phone. He bought her little girl things like a camp chair and a blanket-- because he cared for her. Then, he also brought her a bikini, nail polish, and lipstick--separately not sexualizing but he didn't take her to a beach---dark nail polish is not pre-pubescent pink-- items that are right up the alley for a burgeoning pubescent girl. . At 9 and 10, young girls begin to have crushes or have friends with crushes-- girls who might want to be seen as appealing to the opposite sex. He bought her things that, even if he never touched her, create a terrible confusion because he is an old man who created a feeling of hopelessness (father's accident), confusion (lying to her), mind twisting by having her shop for items as to keep the kidnapping seem like business as usual and seemingly like she consented (not that she did), and then, kept her in a place for his edification to unsettle her and groom her (sexually or in an attempt to alienate her from her family).
Sexual abuse and sexual assault are horrible. The messing with a child's head is equally bad because it causes trust in others and your own judgment to be lost. He is someone she had trusted. Whether he is borderline cognitively impaired or mentailly retarded does not matter. I work with high functioning MR students who can tell you about sexually appropriate and inappropriate behavior. His wife didn't say he was marginal, mentally incapacitated or delusional. He should not get even the thought of a pass from anyone. This was an inappropriate set of gestures that either did lead or would have lead to bad things for this child.
Now, don't get me started that there are relatives who say that he molested them WHO NEVER spoke up when this monster had access to these girls when their father was in jail. The girls were young, vulnerable, without a mother, without a father and NO ONE spoke up. That makes me mad. Given that, he may have been inappropriate in the past and was building to making a relationship now that he thought he was going to lose her.