One problem I've found with it is that people buy me worthless gifts (gifts I don't derive value from because I don't use them).
I've created an online list of things I want at kaboodle.com, or more exactly, a list of things I wouldn't mind possessing, but my family refuses buying anything on the list because that's "spoiling the surprise". I would prefer they stop giving me gifts altogether, but they won't no matter what.
My favorite quote from PG's article:
What I didn't understand was that the value of some new acquisition wasn't the difference between its retail price and what I paid for it. It was the value I derived from it.