For the record, we already do this on a surprisingly regular basis in the developed world. It's called preimplantation genetic diagnostics and is a relatively cheap addition to regular IVF since companies like Counsyl and Qwest have sub-$1000 genetic tests for thousands of genetic factors. Gender selection is already easily done and some Jewish communities have had great success eliminating Tay-Sachs this way. It's "only" a matter of identifying the genes responsible for the characteristics you desire but you may never be able to select 100% of the traits you want if you're trying to select for many of them at the same time. It's not useful for top to bottom designer babies since the probabilities of getting the right mutations and chromosomal combinations is nearly infinitesimal.

I have yet to hear any loud controversy regarding PDG IVF so I think it's one of those situations where genetic engineering will slowly creep up on society and by the time we have a public debate about the ethics it'll be way too late.