I say go with a small gift.
I have a story about the first Christmas after getting engaged to dh. DH had to work 2nd shift on Christmas. (Major bummer) However, his parents invited me to their house for the family gathering. (Which was very nice since I couldn't go home that year.) So off I went to gift opening at their house. My mil gave me a bar of soap. Nice soap that you would buy at a fufuy sort of a gift shop. I still have it somewhere, as I would never part with it, not after what she said when I opened it.
MIL: When my dad was in the hospital, dying, my sisters and I went out shopping to get away for a few minutes. We went to this little shop in XYZ (Ritzy Detroit Suburb.) and I saw this and thought of you.
Me: Thank you, Mrs. F. (Inside I was thinking, uh, when your father died you didn't know I existed and well your ds and I weren't even thinking of dating.)
I think it is in my sock drawer and every once in a while I pull it out and have a good laugh with my dh over it.