Preschool graduation ceremonies, for the kids or the parents?

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When my son "graduated" from preschool, they held a ceremony where the children had to be dressed in caps and gowns, invitations were sent out, etc. It was very much like my highschool graduation, except the graduates were 4 and 5 yrs. old. I enjoyed the ceremony, I was very proud of how well my son did his part, and that he behaved so well with all the excitement going on. Some parents were upset because of the cost of the caps, gowns, tassles, etc. I think they could have had a nice party where they handed out little diplomas or certificates, and the children could be in there dress clothes and that would have been fine also. I did not care either way, but some parents had a fit and insisted on the big graduation ceremony. They were handing out bunches of roses to their kids when it was over, and relatives were handing out the graduation cards with money in them, just like a highschool graduation. In my opinion alot of it was for the benefit of the parents to show off. I think since some parents were strapped for cash, that a nice party for the kids would have been enough. So was the graduation for the kids or parents? I'm still trying to figure this one out.