I like the ornament idea. We have done this many years.I purchased Italian Glass heats one year and Mexican tin another. We would write the year on the back and put our family name on it.
One year we gave a bottle of Mexican Vanilla (you can purchase large bottles at "Fiesta" grocery stores and then pour vanilla into small jars from the container store. I had my daughter use metallic pens to write "Vanilla" and then had her do Christmas designs all over each bottle.
Another year we just purchased dozens of the Squares of Mexican hot chocolate. You can find these in the hot chocolate section of the grocery store. Mexican Hot chocolate is all natural. The cocoa is lighter, has raw sugar and a touch of cinnamon. It is something a little different. Since it is already "wrapped" we just placed a ribbon and gift tag on each.
Another year, we did "smore kits" I purchase holiday wine bags and purchase Huge Hershey bars, The homemade Marshmallows from Whole Foods and then boxes of Graham Crackers. I only placed one package of the crackers in there and then purchase skewers and placed about 8 skewers, tied with ribbon in each bag.
One year we did a movie night gift. It was a couple of bags of Boy scout microwave popcorn and a $5 or $10. Blockbuster gift card on it We placed these in cellophane bags tied with ribbon.
One of our favorite gifts back when they were only $9.99 each.. We gave each family, teacher, neighborhood family the the 20 Q Ball. They sell these in Target in the Toy section on the wall with all of the hand held games.
You are smart to begin now. You can watch sells and go to Tuesday morning to start collecting Christmas gift bags, ribbons,, etc..