YANBU,I think that's really sad and you'll probably find that alot of the staff think so as well.
My first ever job I worked in a private Nursery,I was only 16 and the last few weeks before the Nursery broke up for Christmas were magical for the children.The supervisor there was really good,she'd buy every single child a gift and there was a wrapping room set up and we all helped out with wrapping the gifts,there was a massive Christmas party held in the hall of my old secondary school for all 3 of the Nurserys(they were all owned by the same person)all of the staff were there,some parents came from the begining of the party,others came half way through or nearer the end(depending on being able to get away from work)there were long tables all set out with all different party food and drinks for the children,the parents and the staff.The whole of the hall was decorated.
All of the staff had Elf hats on,Christmas hats,or reindeer head bands.
It was really lovely and all of the children,the staff and the parents used to really enjoy it.
In the run up to the party the Nurserys would be decorated and they'd do a different Christmas or winter themed craft every day,once a week the craft was cooking with the children,biscuits,cakes ect that they could take home to share with they're familys.
It was good for morale for the staff and all of the parents really appreciated it.
I think speaking to the Nursery Manager would be a good idea.If no one says anything then they'll never know.