Well at least its a well loved pony by the sounds of it
I guess its not too surprising that the glue used cant stand up to too much brushing and pulling. As for the fading even the teeniest, tiniest sunlight will fade it. I have a Milkweed and Tumbleweed who sit in a shelf corner, completely in shadow in a dark room and over 2 years their manes have faded in comparison to their tails. Very frustrating!