Gifts are just that...gifts. You give from the heart and what you can afford. What's wrong with making something? If the other person is offended, then they are the one with the cold-hearted mentality. Unfortunately, TV and ads have made a Christian holiday into a commercial holiday. People forget the purpose and lose sight of the simplicity of the manger.
I wanted to stop the gift madness with my siblings and older neices/nephews. There just isn't a rule for when you stop. So I just brought it up one year. I suggested to my brother that since we are at an age where we don't need anything, and I just want to have a Christmas meal together, play games and hang out, would it be ok with them if we just stopped? He agreed. Another year I suggested that since my son no longer lived with us, was out of college, etc. that they could stop giving him a gift. Christmas is NOT about presents (at least for those of us who celebrate CHRISTmas) but about the celebration of the birth of Christ. It's not about Santa and getting as much as you can.