I read that letter today, too, and feel for the grandmother. Some kids are so insecure they have to have expensive (not necessarily good) things to show off. The daughter missed a chance to teach her little girl about manners, creativity, and limited means. Such an omission. I hope the daughter never hits hard times. She won't know how to cope.
On a better note, I never knew if my kids appreciated the things I'd made for them until my daughter's baby shower 18 months ago. I gave her a bear, a giraffe, a small soft Nessie (Lochness monster) all home made. One of the guests kind of gushed about where the toys were purchased, and my daughter said "Oh, my mom makes them. She's the bomb with toys." My (indifferent) son has made scale houses/car garages for all of his kids because he still has the barn we made together when he was little.
Warmed me top to toe.