I like doing little handmade gifts for close coworkers too. Not every year, but just sometimes. We have year-round, monthly, and seasonal charity drives at work so that's very (VERY) well covered; I like doing something a little more personal when I have the time. Usually I just get each person some small token gift; usually a desk/fidgit toy of some sort - a little tub of Silly Putty, a Slinky, a little wind-up toy, one of those bent-nail logic puzzles... (I work in IT, us geeks love little fidgety desk toys)
I like the roll-up tote bag idea though - my county has recently passed a new resolution (or whatever they call it) and soon stores will no longer be able to give out plastic bags, and I think they'll also start charging for paper bags. (With some exceptions for food service, I believe.) There are 16 people in my department, I think I can make enough of them in time...I just recently was shown how to make those bags so I'm all set!