"Absolutely" the norm? Maybe in your neighborhood, but some parts of the country actually expect their kids to show some work ethic and gumption rather than expecting parents to pay for everything. A kid ought to have some skin in the game or else they end up majoring in women's studies or some such nonsense.
You seem to be engaging in black-and-white thinking. The numbers don't add up any more. This might have made sense in an era where graduates were basically guaranteed jobs and a house cost 3x a graduate's yearly salary (and mortgages were frowned upon).
In the era of massive student debt it makes no sense to cripple your children (and therefore your family) financially, if you can afford not to. Especially not to prove a point that can be learned any number of other ways.
In this era, I believe that "don't go into debt (unless you can afford to service it)" is a much more useful lesson.
As far as I'm concerned, my children's job is to learn, and to figure out how to excel. That requires time and breathing room. If they look like they're turning into dilettantes, then of course I can decide not to pay for things. I just wouldn't prematurely handicap them (and myself) financially if I didn't have to.
EDIT> Basically, I object to your casting this in moralistic terms. Of course, we all know people who don't know the value of money. You'd be surprised at how often these are poor or uneducated people, though. If anything, having wealthy parents gives you more chances to learn how to deploy money intelligently.
