I do feel your pain and anger and disappointment. I would also be quite PO'd at this person.
It's just easier to write a check for some people.
Or better yet - don't "exchange" gifts if neither of you want or need anything - Sometimes it makes life a lot simpler for both of you. (Talk it over first, so that it can be a mutual decision.)
Donate what you would have spent to a charity that you consider worthwhile.
The worst thing that just happened to two quilts I made - I think they got burned in my niece's house fire.