My brothers and sister and our spouses have drawn a name for years. As the kids turn 19 their name goes into the hat too. That means the little kids have lots of presents, the adults have at least one package to open. Everyone gets something. This is for the Christmas gathering at my mother's house.
At my husband's family they really go overboard with gifts. Lots of packages! We do buy something for everyone that we expect to be there - mostly just his aunt and two cousins and their wives. He has half sisters and brothers and we usually go to a buffet dinner at his brother's house, but no gifts there. Just a bottle of wine for the hosts.
At home, my daughter will get her stocking and a few gifts until the day I die! It was lots of little packages when she was younger. Now the gifts are more expensive so not so many packages. But she gets a new perfume, some clothes, an iTunes card, and some kind of surprise. Can't imagine telling her the Disney trip is her present.
So I guess the answer is that I am not cutting back this year. I'll cut back in other areas before I cut back on Christmas. I really enjoy the season and I love shopping for family and friends.