I can totally understand where the OP is coming from. I usually pick an Angel child the same age as each of my kids, and let them help me shop for their gifts. We stopped picking Angels when the cost of giving the child their wishes was too much for our budget. Simple, really. If you pick an Angel, you are the only one buying for that child (unless the parents went to multiple agencies to enroll but like the OP said, that's a whole 'nother post...) so we passed over those whose gifts were too pricey. We always hoped some wealthy family would come pick their Angels because it was sometimes more than I was spending on my own kids...
I also understand kids want what they want, and they think they're asking Santa. This is where SA needs to redesign their program, IMO. SA needs to price toys (use a TRU catalog or something) and print out a list of toys under $50. Maybe even in brackets 0-10, 10-20, 30-40, and 40+. Pick popular toys but don't go overboard because the gift givers may not have the means and your child may not get anything. Parents should stay within a guideline when filling out the request for the cards. Ex: 2 things from the A group, one thing from group B or C, and one "WISH" under $50.
I'm hearing a lot of people who think the same way as the OP; requests that average people just can't or won't buy, and so they are moving on to other charities where they feel appreciated. Like Toys for Tots. Or giving to your church or buying a heifer in for a family in Africa. Maybe if SA would stop and take a pulse check, people would come back to the Angel Tree like it used to be.
When we were little, my mom taught school in a blighted area. Kids were coming to school in the same clothes every day. No mittens, or coats. No socks. Dirty every day. She had no problem locating a family for us to supply an entire Christmas to. Anonymously. Drop the food basket and gifts on the porch, ring the bell and drive away when someone opened the door. Merry Christmas! It made a tremendous impact on us kids. We didn't have a list to go buy from, but we sure had fun giving them the same things we were asking for that year. It's just so much nicer to take in one family, but it's also very hard for me to find these families first hand. When I can, I do. When I can't I donate to Toys for Tots.
Oh, and I definitely give used toys to my kids throughout the year from garage sales and consignment stores. Now, if it's good enough for anytime, do you think it's not good enough for a gift? They love it - - they end up getting more stuff for the same money!