If the product was bought, then technically, it was worth the price to the buyer. If it was not worth the price, then they wouldn't have bought it.
A large part of the value comes in the form of seeing a child's face when they open their presents. A lot of times that is enough to justify the price. Those are memories that you keep, and that's worth much more than the money involved. Whether or not they play with for years after that is not always relevant, from the parents' (the buyers) point of view.
I can't really get my head around the arguments that we should keep our money instead of spending it on the holidays. The last thing our economy needs is a terrible holiday quarter, I would think.