I have a little anecdote, from personal experience, which I think will be along the lines of the reasoning for some of those who are advising against this.
When I was born, both of my parents had decent jobs and they decided to make a special purchase as a gift for me. My father has a passion for watches and had collected them for many years, so they decided that a special watch would be a suitable gift. They spent a LOT more money than I would have liked them to (had I had any say in this). They purchased a Rolex, which would surely have cost over a month of their combined take home pay.
It was a lovely gesture and I truly appreciate it, but though I am still stunned by quality of it, watches are not really where my interests lie and I know that it I will never have the same level of appreciation for this as my father would. I would have much preferred them to spend the money on themselves, or for my father to have instead bought the watch for himself (to celebrate); it is afterall the sentiment which is important, not the item itself.
I'm struggling to effectively express my feelings, but please do not read this as me not being appreciative, that is not what I'm trying to say.
To surmise, the interests of our children do not always match our own; and something of great value to us may not be appreciated to the same extent by our children.