I remember when there was the same sort of outcry during the Reagan years - (
) about a set of china. Private donations were used to buy that china too - and while yes, the money could have been used for other things , the fact is that china belongs to all of us. The Obamas will use it to entertain at the White House, and it will be a part of the many beautiful items given or donated over the years which make up the historical legacy of the executive mansion.
I don't think serving foreign dignitaries on paper plates is an option.
And hey, you can think of it as a stimulus package for china manufacturers!