I am not a parent, but my goal for any kids I would have is to try to help them find the best thing for them to do with their life based on their abilities which may or may not be college. If they wanted to be a doctor, great, be great in school and get a scholarship and loan and perhaps some parental help. I would bet that marginal/average students whose parents pay for college aren't as committed to doing well as students who get loans or GPA based scholarships. Working for something makes you appreciate it more, and take it more seriously IMO.
College is still a goal for parents to give their kids. Tech school/military is option #2. Given a preference, and all I have alluded to above, I still want to send my daughter to college.
There are already programs for tax free savings for parents to use to save for their kids' college aren't there? 529s or something? I think those are a nice thing for parents, and see no need for further tax breaks for something that is optional.