You can absolutely resist spending extra on kids that way, but there's always that pang of guilt that they're missing something that might've made their lives a whole lot easier down the road (due to granfalloon-sort stuff, mostly, or knowing the right people). Might they marry into money if you send them to that summer camp? If you send them to a school where it's assumed everyone's doing serious preparation for the SAT and for college applications, might that not bump the school they get into up a notch or two on the name-recognition scale? Most spend at least some on this if they can—a couple moderately-priced activities per year and housing somewhere you wouldn't live if not for the schools, say.
It's all probabilities and chances, but the more you spend the better the worst likely outcome gets, too, and the bottom on that can be quite low indeed—it's not just dirty-ol' middle class envy. It's hard to resist.