I would give them their gift with the spirit in which they were made. Please don't let then ruin your wonderful Christmas Spirit. Bring a white elephant gift. You can tell them you sew enjoyed making their gift if they ask. Don't feel hurt or bad. You made these wonderful gifts with alot thought and feeling and that is how you should give them.
Next year of they want to exchange you can decline and just enjoy their company and the holiday.
Merry Christmas
Hugs Nonnie