I've got a slightly different experience with this.
I have two cousins who are significantly younger than I am (they're about 10 and 6 now). A few years ago, I opened the Christmas box from my aunt and uncle and found a poorly-painted plastic turtle (obviously an art project from the then-3-year-old) and a broken dragon knickknack. Apparently they let their children pick out presents for everyone that year. And then the two years following that.
Now, I wouldn't have minded AT ALL if this was presented as a gift from their kids - but this was from "the family." For three years running now, DH and I have received little-kid artwork and something my other cousin probably found in the dollar store discount bin as our Christmas present, replacing the simple-but-adult card we used to get from my aunt and uncle. (Which is a big improvement on when my uncle was single - I used to get birthday cards at random times of the year, or mailed to me but personalized to my sister, etc.) I don't expect a "real" present - I know money is often tight with that family - but it would be nice to either send the artwork AND a card from the parents, or to have the kids make something actually useful. There are tons of projects that elementary-age children can do that aren't just "cute" - bake cookies, make a functional pencil holder and decorate it, etc. Each year, I felt like the "gift" was just the result of an afternoon's play time, that would have gotten thrown away otherwise and didn't have any thought put into us as recipients.
This was just my experience, so I don't want to make this sound like I'm passing judgement on anyone who stands by child-made gifts :-) IMHO, child-made gifts given from children = fine, child-made gifts given from adults = lazy.