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Should be banished from Ottawa; it's used to describe EVERYTHING. Hell, the Mayor describes the Confederation Line as "world class" one day and as a "Chevrolet" the next.
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Hey, Chevrolets have come a long way in recent years!
But yes, I agree that the phrase world-class should die in a sea of fire. I blame Toronto and more specifically David Miller for popularizing the phrase in the Canadian lexicon. It smacks of envy and insecurity. Hey, Torontonians, why not also perpetually mention you're the fourth largest city in North America to seal the deal? Oh, wait....
'Luxury', however, is a time-honoured term associated with tackiness, so there's a retro thing going there (thing 'luxury' vinyl tops and faux-leather seats in a 1970s car ad).
I'd rather sit in something that described itself as 'luxury' instead of world-class.