Many parents wish they could give their kids nicer bikes.
Of course this bike is exaggerating, but so what. Spending 10k on a kids bike makes a lot more sense to me than all the fancy cars I see people driving around in.
Yes, maybe there is a sad storyr about parents pushing their kid. But maybe not, so lets not judge without knowing the story.
What I do know is that at the age of 3 my son had to ride a bike weighing more than mine. True it cost only 200CHF (~USD), but I would have happily paid 2-3 times more (his sister would inherit it). However, there exist no nice light bikes for kids. And before you comment that heavier bikes makes kids stronger, think about what heavy loads to to development of bone-structures etc, and the fact that some people live in hilly terrain.
So albeit the bike on this photo is over the top, I am very happy to see that someone is actually willing to do something about it. I wish they would make 12" and 16" bikes that weigh less than 4kg - which I think should be perfectly doable for, say, 500CHF~USD.
Edit: if anyone actually do know of better children's bikes available commercially south of 10k, please post links.