I totally agree! Dd IS getting a present, she and her bff are throwing a graduation party the night before AND we are taking them to the beach the next day!!
This is my baby, the last one I will have leaving 8th grade!

She will now be an "Aggie"!!! (the mascot for the high school she will graduate from, I graduated from and both her brothers as well as several cousins, aunts and uncles, graduated from). Around here for OUR school its a big thing.
Its a milestone in thier lives, just like a 10th or 25th wedding anniversary or graduating high school. Its a new step into something else.
Leaving Kindergarten and going to 1st grade, while it may just be down the hall, is a milestone. In many schools there is a huge difference between Kindergarten and 1st grade in the way the kids are taught, treated, etc.
Additionally, getting that cute little diploma gives them a sense of accomplishment. I really believe, its a good thing.