I always try to make as many gifts as I can. I think it's more personal, and I treasure the handmade gifts I receive.
Every year we make a photo calendar for my husband's side of the family. They are overseas and don't get to see our kids much, so they like it a lot. My parents and grandmother also get one.
We try to come up with an ornament to make and pass out each year. We have a nice collection of these from over the years.
We have done lots of food gifts - jellies, salsas, candy, breads, etc.
One year I knitted scarves for all the ladies - I'm not much of a knitter, but this was very easy to do.
I did a family genealogy and had it bound for my dad's side of the family. Everyone loved this!
I needlepoint and get these framed for gifts.
Last year I made towel angels - you can google these, they are really cute.
Beeswax candles one year.
Clear glass plates hand painted with a Celtic Christmas Design (I know - Christmas/Celtic, whatever, it was pretty).
This year, I am making cute retro aprons for the ladies in the family.
I haven't read through this whole thread yet, but I am always looking for ideas, so I plan to take the time to read all the posts!