My nostalgia glasses take longer than two years to get their rose-colored tint, so I know it can't be that. :p I haven't looked at the figure much lately, but I remember that people would put the figure's "mouth" underneath the head-wrap piece instead of over it -
Rebelscum's photo archive has it positioned incorrectly, and it looks like it was packaged incorrectly, but I also remember it not being THAT hard to correct. A little inconvenient, perhaps, but not worth a complete overhaul. And yeah, the soft goods don't hang as well as they should, but soft goods are hardly ever perfect and I just hooked it to the bottom of my figure's legs to spread it out and it looks fine.