So..a story. I coached my kids' sports teams. Early on, I told parents we would only give trophies for a successful season, cause otherwise it robbed their success of meaning...
So, I was right and wrong - participation trophies were stupid and MY generation should not have given them out. But kids were not deluded into thinking these..
So, don't condemn the kids who received participation trophies but understood them as stupid. Condemn the parents - MY generation - who were so shallow they insisted on giving them out.
I caved to the parental anger. I gave out participation trophies. But each time I told them "This is something to remember the season by." Except when they won, then I bought larger trophies and said "WE WON!"