Hi, YANBU, but maybe it could be helpful to think that really neither are they.
I'm sure it was well intentioned, and will be given with love to your DD.
But I think you've already come up with a brilliant solution. And not just for yourselves, but for all of us ! Just deliver your suggestion with some penache ( or get your DH to do so ) and your home and dry ( and without a Thomas coffee table in the lounge ! )
I'd say "Oh, that's lovely ! DD will love it !
Where did you find it ! There's just one thing DD would like to keep it at your house because she says you always have everything for her to do her best pictures / You are both so artistic / She wants to keep it in her little bedroom at your house, in the corner by the window etc. etc ! Use your creativity and charm ! Can also be delegated to DH !
Try to keep a sense of perspective / humour / generosity etc.
My parents enjoy giving my son lots of construction kits, remote control aeroplanes and boats. It works much better if Grandpa makes them with DS too, and they are kept and flown/ sailed there too.
I just don't have the time/ inclination or skill to get my head round it all ( neither does DH ) Grandpa however is great at it all, and it's something I have very fond memories of from my childhood.
Grandparents, Aunts, and Uncles can sometimes be encouraged to give time / space / skills too. The High Street only encourages us to buy and give the stuff to each other, but it's often the gift of our time, thoughtfulness, effort and energy that will make the real memories, and be most appreciated.
Hoping to help OP and other readers. You've inspired me to be bolder with this, as some tricky presents have been brought home with DS, and really they'd be much better left safely at GG's house...