That’s true, but I wasn’t willing to potentially give up 100% of the money to someone else to avoid a 10% penalty. Not everyone has other beneficiaries that would be suitable, even if willing.
Another option is education for yourself or spouse. Lots of creative ideas for that.
I haven’t read the entire thread, but isn’t it much more than $15k? It should be 15k per gift per year. If you’ve got 5 kids, you can give each of them 15k, and so can your spouse. At least that’s how I understand it.
If I’ve misunderstood the whole subject, please just take a limb and leave the head shot for something more important. 
Yes, I just used only one beneficiary as an example. But it becomes significantly more valuable when you have many more beneficiaries, which isn’t that uncommon when you start dealing with the uber wealthy and numerous different family partnerships, etc.
Good point, it’s YMMV depending on everyone’s family situation. I know there are only very few family members in mine that I’d trust with doing this. Plus, it would not be a one-lumpsum event either. You’d pay for their kid’s first semester tuition. They’d “gift” you back the money right away - or at least before the next semester payment starts. If they didn’t, obviously you’re not going to continue handing them out free money. And I guess it also depends on how much the 10% penalty on earnings (not principal) would be. If it’s too small, it may not be worth the hassle.
Btw, there may be another way to avoid paying the 10% penalty. In case the beneficiary dies, I’ve read that the 10% penalty is waived. So if you can wait, change the beneficiary to an elderly or terminally-ill relative and withdraw the money after they pass away. You’ll still pay tax on the earnings though but that would be the case in a taxable account and you still enjoy the deferred tax feature of the plan while it lasted.