M.I.
we (let's face it, I) try to do a combination. i've bought the foam ornament things at Pat Catan's or Michael's and had him make one for: 2 grandmas, 3 grandpas, 4 greatgrandparents, 3 uncles, 4 sets of aunts & uncles, and teachers.
last year, we started having him use the money he has from birthdays, report cards, etc... to buy little things for the grandparents and uncles at the Santa Shop at school.
he doesn't buy or make for his cousins individually.....that would be overwhelming. we J. give them a gift from all 3 of us. now, when they get a few more years older, depending on every one's financial life, i'll suggest that the kids do a grab bag or exchange names. we'll see if that goes over well. i have a ton of cousins, and we always did that. it was so much fun to get stuff like that, even if the cousin giving you the gift wasn't able to be there because they were out of state.