I think it's absolutely horrible and tacky! Where I live you see loads of poor babies with big gold dangling earrings..Yuk, poor things! First, it's not healthy (risk of infection, pain, allergies, they can get caught while playing....) and second it looks absolutely awful. But then, it usually goes with the outfits these poor mites are made to wear...:O(
As for calling it child abuse, yes I think it can be a form of it. Although it would have to be coupled with actual everyday mistreating of the child to be considered a criminal offence. In my opinion anyway!