I cut all the loops off and inserted grommets to the front. I had to take the shoulder straps apart and placed them in more toward the center since the way the pattern had it, it was cutting into her shoulder.
Here's a close-up of the grommets
This is a close-up of the lacing on the sleeves.
Overall I did make a bunch of changes to this pattern, but it's really not as hard as it looks. I thought the sleeves on the overdress might give me a bit of trouble because of all the strips I had to put together for the dress, but it wasn't difficult at all. Our daughter loved it. Now she can save it for other fun dress up events like Renaissance Faire or Comic Con :-)