I think you are on the right track. I wish more people thought the way you did. We don't need to "buy" our family....we just need to be there for each other. I made most of my gifts this year and they were all loved. That makes me feel good. I get to take my hobby that I love to do, and make gifts for others which are useful. The items that you make have meaning and I know my kids think it is the greatest to have handmade.
One of my daughters gifts were that we re-did her room. It cost me a gallon of paint. Everyone worked together and took everything out of her room, we taped it off, painted and put it all back together in 2 days. I made her new curtains too(she had to pick from my stash). It was something that she really wanted and we all had a blast working with each other(and the little ones get a learning lesson on how to paint).