That’s both funny and cute. I guess she’d never heard of the time-honored way to stick a bow to the baby’s head–a dab of Karo syrup.
If the baby is not precious, “My! A baby!” or “Look at the baby!” or “Oh, I see that’s probably a baby!” will do. 
I would like to interject a real world example of this old photo Vs modern beauty effect. Remember the PBS series Manor House? we had a huge thread on it a few years ago. All the women were dressed in those turn of the century outfits and on the last episode you saw their true selves with modern hair, makeup and clothes. The transformation was quite startling.
“Gosh, I’ll bet you think that’s a baby!”
“Wow – that’s either a baby or a real good-looking monkey!”
“My goodness, it looks just like you!”
“I’ll have you know he looks just like his father, Bobo!”
So at least we can all agree that she is much less attractive now than she was when the photo was taken.
or “IT’S ALIVE!!!”
I just remembered that there is a more modern hairstyle that tends to homely-up those that have it. I see it a lot in photos from the late 1960s, and I still see it today on more “earthy”-type women; the type that might work at independent bookstores, small food co-ops or old-school health food stores. It’s long and painfully straight, but very flat and lifeless hair, parted down the middle. Seems like a disproportionately large number of women with this hairstyle wear glasses as well. Can’t really find any photos.