Yes I do partially agree.
On the other hand, the needy did get a very large donation.
Personally, I did think the same because children look forward to it, but those children who are then told and taught about donations and how we are also rewarded for it, it's a great lesson for them.
I guess he could've been even more generous and gave the Eidy in cash together with a receipt on their behalf and taught them a lesson. This would've been much better and his status would've been raised in the Aakhira as well as in the eyes of those parents who looked forward to getting their kids money ;)
(maybe it was intentional to teach people a lesson, Allahu alum)