I agree skip the USMMA or KP on the face for now - go with the G-Shock or something similar at least until your mid returns to campus AFTER their second sea year, and by then you and he/she will likely be saving those kind of $$$ for their Class Ring....
The USMMA watch, and similar stuff like the USMMA Chair, etc would indeed be an appropriate graduation gift though. Of course as I keep pointing out though there are also often a good selection of used Ferrari 308 Mondial GT's to be had on EBay as well and what 20 something KP grad wouldn't cherish such a $30,000 or so gift to remember their time at the USMMA by.....