I work for a nonprofit that serves victims of domestic violence. We coordinate a similar program, but it's one where employee teams/companies such as yours would adopt one of our client families and fulfill a wish list. A few years ago, we had a client who was really over the top with her wish list (stuff like a fridge, swim lessons for her kids, and just a lot of items overall).
As a result, we instituted some guidelines requesting that individual items stay in the $30 range maximum and direct service staff who work with the clients monitor their lists a bit more closely than in the past. And we do stress with our donor groups that they should fill the list to the best of their ability, i.e. if they can't get everything on the list, that's OK.
We have from time to time received push back from donor groups re: kids wanting certain video games, etc. But in all honesty, those requests have come from kids who are a bit younger (12 or under), and I can understand how they might have received a game system when the parents were together, family income was decent, and now that their folks are split up, they still have the system, but (usually) Mom can't afford to buy luxuries like new games.
I have to admit, though, even I'd be side-eyeing a 17 y.o. asking for stuff like name brand colognes, expensive shoes, etc. The parents should have sense enough to curb those requests, and it's not like a 17 y.o. isn't old enough to understand that it's people's generosity that's even enabling him to have holiday presents this year.
Having run our program for a few years, I think you're well within your rights to mention to the coordinator your and your team's response to the list, but I also think it's well within your right to just fulfill it to the best of your ability. Athletic shoes in a specific size, sure! Name brand/designer shoes that are 3-4x what you expected to pay, heck no!!