If they want to spend money on their first born, there are far better, more rational ways to do it. $199 in a 529 plan turns into $2k by college time. $199 in used clothes or legos will go a lot further at that age.
at some point you need to come to grips with the fact that some people are just wealthier than you, and don't really care about that $2k in 18 years because they or their parents, or grand-parents, or great great great grand-parents already solved that pesky 'lack of money for the kids' issue.
you're projecting your own financial situation onto others in the demographic buying disposable $180 doo-dads for their kids.