Wrapped. The kids could get their stockings in the am, so we could sleep a little longer.
Also, randomly spread under the tree. Someone played santa and passed out the presents. We watched each person open their present before another was given out.
This sure taught patience and respect.
Now, my husband grew up with santa presents were not wrapped and each kids presents were stacked all together. They just dove in and opened their pile.
I liked how I grew up better, so that is what we did. See the first description. The only thing that I didn't wrap was a doll each year that my daughter got.