Merry Christmas, Venus!
I used to really "Martha Stewart" the stuff. Coordinating themed wrap for all my gifts, loads of tissue paper, matching tags, work-of-art bows, etc. No gift bags for me! Over the years, it just got tedious - and expensive - to do all that.
Nowadays I wrap most things in tissue paper and use ribbon to tie it/decorate. I keep one roll of Christmas paper on hand for large items. The only things in boxes are things that are originally packaged in them. Everything else is rolled or wrapped as is - tissue paper is marvelously flexible. I do use gift bags, but I must confess: I've never bought any - they're all recycled from gifts I was given.* I use gift tags for parties or large multi person exchanges, but if I am presenting in person, I don't. I've also used a gold or silver marker to write the to/from info directly on the gift.
Holiday themes and color schemes are out (except for that one roll of paper and some of the recycled gift bags). I try to make everything look bright and festive, but I might use fuchsia and turquoise with white satin ribbon to do that. Actually, I make it a point not to use red & green if I can help it. *I work on the assumption that gift bags are meant to be recycled. The same for bows. I will even admit to (Grandma would be proud) rescuing large pieces of gift wrap. I am, of course, careful to remove any and all traces of previous use from anything I recycle, but I cannot fathom the idea of trashing (undamaged) stuff like that after only one use.
As for etiquette. I think it comes down to knowing your recipient. There are probably people out there who think using tissue as an outer wrap is cheap, others who think using tearable paper is wasteful. I think wrapping a gift makes it more exciting; someone else might feel it's too much pressure on the recipient to feign an emotion when they don't know what they're getting. Still another might believe a gift isn't truly a gift unless the giver has gone to some trouble to conceal and present it.
Apologies for the novel length, and I hope whatever the style, your gifts are received graciously!