Great idea! Have a few ideas but am eager for more. Here are a few things I have done/am doing.
Don't quilt for many for Christmas (some are quilt worthy, some are not). But...lots of other things to make!
For those who have an embroidery machine (or do hand work!), last year I made toss pillows using a red work Christmas themed pattern (Jan's Elves) through batting, attached a border and envelope back - voila!
If you have an embroidery machine, watch for inexpensive fleece jackets (I was all set to make them last year and Bass Pro had them for $10 each, yippee!), embroider whatever they like along with their name - instant hero!
This year I am making fleece blankets and toss pillows (gotta love those 1/2 off sales!). The blanket and pillow have large fleece snowflake appliques and ball fringe trim - see the pattern at Epatterns.com.
For my SIL's I am making quilted casserole dish carriers - many patterns available (if a pattern is even needed).
I'm ready for more ideas!