I stumbled onto this thread a year late, LOL, but still timely for me as my DS12 makes his "graduation" from 6th grade in a few mos.
I think I agree with all of you. On the one hand - society is out of control. We reward kids on EVERY sport team, for example, starting at the pre-K level - until they have a whole wall of meaningless trophies. Gifts become the focus instead of the event, passage, or milestone. I have never understood making a big gifting-hoopla out of religious passages, such as 1st communion or confirmation. To me, a card recoginizing the sacramental honor is enough. For each of our boys, they receved the outfit they wore, a small picture frame (which we then put a pic of themselves in) to mark the occasion, and then the Church gave them a gift that contained a rosary, mass book ,etc. My dd makes her 1st Comm next year and we will do much the same for her.
Ascension into the next grade does seem like a silly thing to reward someone for - like asking fora reward for being a good citizen, there are some things ou're just supposed to do, LOL. HOWEVER - my DS12 has worked extremely hard the past 7 yrs, he's a top student in his class, and will likely garner many awards at the ceremony in May. For that kind of sweat equity, I feel a reward is definitely in order. DH and I have been pondering many ideas and I for one lean towards memories rather than "stuff" in cases like this. We are thinking of taking him on a surprise wkend trip - nowhere really fancy or distant like Mexico, LOL - perhaps only as far as a few hrs away. Just something "fun" to say, you've worked very hard, we recognize it, you deserve to take a break and enjoy yourself! Granted - by the time we pay for a hotel room for a night or two, and perhaps tickets to something (like an amusemet park or a ballgame or whatever we decide to try for) I suppose we could have bought an iPod or stereo (perhaps both!)... but my thoughts are that technology eventually wears out, but memories last forever. Besides... soon he will be in jr high and probably won't want to be caught dead or alive having fun anymore with his geeky PARENTS, right?

So we gotta seize the moment!!