This is not ok...

Earlier, I observed Tink from a slight distance as she took The Kid's pirate guys and had them kiss her Polly pockets. She declared they were married and then put both in her Barbie bed.
Less than 30 min later Tink and her brother were playing video games next to each other. The Kid proceeded to refer to the two of them as Adam and Eve. I interrupted and said that could not be the case because Tink was his sister. He then told me that Adam and Eve were also brother and sister because God took his rib to make her. I said it didn't really work like that and they were not siblings. He thought about it and then replied, "Ohhh..I get it...so Adam married Eve who was his daughter, because she took his rib." Ummm......
Here is the dilemma...do we need to have a serious sit down talk with both of our children about marriage/relationships or should I pay closer attention to what they are watching on the Disney channel OR do I think about ripping them out of their current Catholic CCD classes and rushing them to a new location? That may prove awkward since my mother-in-law is the CCD director. Or do I just blame their behavior on her poor grand-mothering skills?
Better yet, should I just scrap trying to make decent people out of those two creeps and focus all my attention on teaching the baby morals? Or maybe is the problem me as their teacher?
This post is not really open to your suggestions. I am afraid of the answers.
Side note- I also worry that the Polly pockets are attracted to the pirates. What about Spiderman? He goes to college and loves his aunt. Or Superman, he is shy with a positive career. I wouldn't even mind their half breed alien babies. Why does she have to go for the wayward criminal type with earrings and a knife??