If I were you , I would come up with a nice list and let them decide whether they wanted to buy used or new things for you. My mom was like this to an extent - never wanting me to spend money on her. She forgot that one of the joys of the season was in giving a gift to a loved one, even if you were on a budget. She sucked a lot of the joy of gift giving out of the season for me.
Here are some ideas:
A book basket, filled with 4 or 5 of your favorite titles (you can suggest used copies but it would also be nice if you gave them one or two that were new in hardback so they could mix it up for you) with a snack bag of some sort so you could enjoy a treat while reading.
A movie basket with an assortment of your favorite DVDs and some microwave popcorn. Again, ask for a few used ones and one or two new ones.
Tickets to some sort of play or movie for the whole family, so you can "count" them as a gift to you but you can take your family or just you and your granddaughter to a nice event.
I would not buy my mother cheap stationery from Big Lots under any circumstances. A nice box of high quality stationery is a nice gift and it meets your daughter's need to give you something nice. Say thank you and enjoy using it. A writing basket with a couple of pens and some stamps as well as a nice box of stationery isn't a trerribly expensive gift.
Think of sometihng you could collect and ask for one or two of them. I have started a wooden nutcracker collection - it's a perfect gift for people like my daughter's boyfriend to give me - not too expensive (they are 12 - 15 bucks at Target) and you can never have too many. At some point I can start giving them to my daughters - you could do the same for your granddaughter. I know that one of the nicest memories my children have of their grandmother is of her angel collection - now they each have several boxes of her angel figurines packed away for the day when they have their own homes to decorate for Christmas. Christmas ornaments, nice dishes, some sort of knick - knack - something you would enjoy now and later could pass on to a family member.
Ask for some nice lotions, soaps, etc - something that you would use up. You could even ask for a new supply of something you use frequently - if you really want to be frugal think of things you use up at the lake and ask for a "Summer Box" of cleaning supplies, etc. Practical but also a nice gesture as a gift if you REALLY can't think of anything else.