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If your daycare child seems to enjoy it, then I would continue. If you find yourself doing a majority of the "craft" for them, and he/she is bored; I would re-evaluate the activity (or activities).
I hear your frustration, though. I see our "special" projects sit for days, sometimes weeks, on end in the kids bin before mom/dad finally shove it into the bag to take home. Ah, well. What can you do?
When my kids were in preschool I just didn't have the heart to throw away their art work. But then again I am a packrat.
I find it sad that parents don't appreciate what their kids do a little more. As far as keeping arts and crafts, I have always tought my son that we can't keep EVERYTHING. So he helps me pick the most special crafts, we hang them up for a few weeks and when we've got to replace them with newer crafts, if we still think the craft is extra special it goes in a "memories box" where we keep them forever :D