This place setting photograph of the new George W. Bush State China Service shows one of 320 14-piece place settings that cost a total $492,798. Although it was paid for by a private association trust it is utterly astonishing to me.
First of all George W. Bush will be leaving office in less than two weeks. The choice of this china should have been made by the incoming president or his wife. To my way of thinking, this is an insult to the incoming presidential family.
Second is the outrageous cost. The cost per place setting is $1,539.99. Of course you could say that this will be the china used to serve heads of state, kings, queens and other high level dignitaries. While this is an accurate fact it is also a fact that the United States has historically avoided honoring our presidents or other dignitaries with special tributes. In David McCullough’s biography of John Adams he specifically identifies Mr. Adams’ failure to give the president any specific title beyond “Mr. President.”
Abraham Lincoln, Harry Truman, Barack and Michelle Obama all came from modest environments and they have all done quite well. While we want to honor the president and his guests there is no need to treat them as aristocracy.
Coast Contact 
I see nothing wrong with this. I wonder why you do? As you said, it was purchased by a private trust, why does this concern you? I believe you would have also considered it an insult had they left the “old china”. Ridiculous!