Grandparents on the list? We recently ordered these darling customized ornaments from Etsy with pics of the kids (although a very special pet works, too). Love to support small artists.
Another fun idea for the kids to get into the spirit of crafting and gift giving - making splatter clay bowls! Looks relatively simple, and the end result much more usable than some of our kids' other clay creations (one-eyed monsters and such).