It certainly makes sense. But it doesn't mean parents shouldn't buy their kids stuff. It means don't buy your kid everything they want.
Buying young kids stuff for Christmas, birthdays, or as a treat because of e.g. good performance in school or something is a good idea. But caving in to every demand they make will definitely ensure they never appreciate the value of money - because they get pretty much everything they want when they want it. You say your parents got you stuff if it was within their means, but to me it doesn't sound like you got everything you wanted.
Buying kids cars when they're old enough is certainly a good thing and I don't see how people can complain about that - what teenager can afford a car when they pass their test? And most teenagers need cars for university and for finding work, it's not usually a luxury you can easily do without. My grandparents bought me my first car for £3000 but I paid for a new laptop out of my savings (£500 out of just over £2000).
I'd say it can have that effect, but obviously some people exaggerate it to ridiculous proportions.