It all depends on how you handle the gift-giving. There's no reason you have to get something GI-FREAKING-NORMOUS in order for it to be a good gift. At this point I only have a few gifts I have to think about buying (my parents--even though I'm out of the house, they still let me sign onto their gifts to everyone else as long as I kick in part of the cost), but usually what I do is pick out some CDs or DVDs I think they'll like. They tend not to do a lot of shopping for themselves, so usually those come as a surprise. Still, I've gotten pretty good at knowing what they're going to like.
To me that's the fun of it--catching them by surprise. Even though it's quite small in comparison to what some people do for Christmas, that's really all I feel like I need to do: just show that I gave some thought to it and that's enough. It doesn't have to be an extravaganza to be special. Maybe it's helpful that I just don't come from a family of big spenders, including most of the extended family with only one or two exceptions I can think of. So nobody gets bent out of shape over who spent what, who could afford what, etc. And that's the way it should be: giving a little gift out of kindness than sweating it over some huge mountain of them.