For my son, solidly HALF (if not more) of his gifts are "needs" or things I would be buying anyway. Clothes, sporting equipment, favorite foods, etc. New PJs are ALWAYS wrapped and opened on xmas eve. Ornaments, quilts, pillows, hot chocolate mugs.
I make a lot of stuff for xmas (starting EARLY... Like... you know, January. LOL mostly stuff I didn't get finished in time). Grandparents -ours anyway- LOVE photoalbums. Which are a time consuming pain in the keister to make. Similar, I got all the "kids" together one year for a family photo. I learned how to make truffles and truffle stuffed figs a few years ago (super easy, but tiiiiiiiiiiime consuming). Costs me about $80 to make 500. Yeah. Next time you even THINK of paying $4 for a fig, or $2 for a truffle, know that you can make your own for 16 cents. I'm sure the shoppes do it for a fraction of that cost. I can throw in a small $10 bottle of port, and have just given a "splurgy" gift. For my dad, one year I got him beer. 20 kinds of german beers. I'm thinking of revamping that this year with microbrews, or maybe irish. Then, of course, are the hand-me-down electronics. iPods, cameras, computers, etc. Free.