I've already phoned my brothers and parents and suggested banding together to buy our grandmothers digital photo frames (which I can easily keep up to date with new pics by taking my laptop with me when I visit).
My brother has his first child due next month, which means that we'll only buy something for the baby, and maybe a very small token gift for my brother and his partner. That's the way we work it, and it was the same last year for my wife and I where our son received a lot more than us.
We don't buy anything for friends, although last year I did stretch to buying my boss a nice bottle of wine as a thank you for his support over the year.
You'll actually feel good if you don't overspend.