"The bottom line is that parents need to save early and often in a tax advantaged fund (529 College Savings Plan) so that you use compounded interest, reinvested dividends, dollar-cost averaging, and no federal (and most states) tax bill to your advantage. "
I agree, but I would add they should significantly increase the annual limits on Coverdell contributions as well. Many states have 529 plans that are limited to ten or so mutual funds with high fees. A Coverdell offers so many more options for investments. it is true that not everyone is a sophisticated investor, but those willing to take the time to become educated and do the research deserve more than what is sometimes a dismal array of funds.