I hear about it every day. The people at work just buy buy buy for their kids. When we were kids, we appreciated Christmas and Birthday gifts as it was something special to get something you've wanted all year. Now, the kids just get anything and everything.
I know people at work who've listed probably $2000 worth of stuff that the get each of their kids for Christmas. My kid got a $50 MP3 player, and that was something special for her to get.
What do you get a kid for the holiday present when they already have everything?