I see your point. I tried all kinds of ways, non too subtle too, to encourage my parents to stop with the cheesy outfits for my youngest and move on to something with more lasting in quality. Even a elegant hand knit bonnet for the hope chest or something!
I say college funds are a great idea and that your husband made a link to an actual account vs. your checking account makes it well-intended. I think a college fund is smart and uses humor for those closest to you, like grandparents. If he sends it out to his co-workers and Facebook friends then I'd rethink the presentation. Hope he didn't post a picture of Alex in rags lying in an old shoebox right.
FWIW: I have three and still no college fund.