I disagree with the premise of the original letter. While the gashmiyus in town has gotten out of hand, why is that an impediment on how one brings up their children? People need to have strong values and instill that in their children. Chinuch should not be based off of looking over ones shoulder and gasping fearfully and how much gashmiyus your neighbor has. Rather teach your children to be proud of your own value system.
I say this as a lifelong Lakewooder who recently moved to one of the surrounding towns. Perhaps we are in a better position to give this over to our children because we have fewer frum neighbors and each one is valued not based on what kind of clothes or house that they have but rather becuase they are a fellow frum yid? Perhaps because we didn't push to get into the so called "better" schools where the coemption is more fierce? Perhaps because I walk 20 minutes to shul every week with my children so we have more time to discuss life values? Maybe all of the above?
Try doing that when the only school your child got into has every popular kid in the class steeped in the materialism culture. The Rambam says in hilchos deos that a smart mature adult will be נמשך after his סביבה despite his best efforts, and you want a child to resist? You can give him all the chinuch that you want at home and it will certainly help to a degree but in the end the day it’s kind a like the poor immigrants who arrived in the melting pot of America trying to give their kids Torah values at home while they were surrounded by their assimilated, friends, neighbors, and classmates. It was pretty much a lost cause.
The currency these days is meat boards and Salt, Range Rovers, and private jets. The lighter version is electric bikes and Tiros, Mikes chicken, and Ski trips. The value of hand me downs, home baked goods, הצנע לכת , driving a serviceable older car, staycations, and the like, rather than celebrated, is viewed as an outdated מוסג from de alter heim.