My mom has an ornament I made in preschool. It's ugly to me and she loves it, lol.
So does mine. I've begged her every year since I was old enough to realize its ugliness to please not put it on the tree, or at least hide it in the back where no one will see it. Nope. No dice. Won't throw it out, and it always has its pride of place at the front of the tree.
Luckily, this year we don't have a Christmas tree, just the handmade, light-up ceramic tree my mom bought from a friend and co-worker (who's also a ceramic artist) many years ago. So no ugly ornament that I made when I was 3 at the front of the tree.
That said, if my 2-year-old cousin down in Long Beach sent me a hand-painted Christmas ornament, I'd be thrilled. I don't get to see her often, so whenever I get something from her (or her older brother, my 4-year-old godson) I'm tickled pink. The "get well" drawing of purple and blue marker scribble she sent me was placed prominently on my door when I had all my get-well cards up.
If she sent me a Christmas ornament she painted herself, I'd hide the one I made in preschool at the back of the tree and put the one she made at the front, displayed with pride.