I agree with you on this. But your key words are 'the best you can do". I make a lot of Charity quilts for kids, but I'd have to make a lot fewer if I always had to use $10 - $12 fabric.
The quilts I make are simple quilts, but I make sure that they are what I call 'striking' - quilts that catch the eye and are unique, one of a kind quilts. Even if I use the same pattern, I mix it up a bit, sometimes with a pieced backing, sometimes with different border sizes and, of course fabrics.
As for the comment "too pretty to give away to charity', I agree with you. I always imagine a child seeing the beauty in a quilt and the delight on his or her face. That's the whole reason I make quilts for charity!