Papa Deuce said:
I think it depends on the situation, and the particular gift card.
When I first started working, I used to give my coworkers gift certificates to the local mall - good at any store in the mall. Was that thoughtless? I don't think so. I just didn't know these people very well and didn't know what they would really appreciate.
I hate getting presents I don't want and don't need. It is too much hassle to figure out where they came from and run around returning them. I usually just end up selling them at the next yard sale, probably not what the giver intended.
As I got to know people better, I learned what their likes and dislikes are, where they like to shop, what their hobbies are, what they collect, etc. I still got them gift certificates, but to specific places that I knew they would appreciate. And they would often come in sometime later and show me/tell me what they got with my gift.
Of course, numerous times I've been the recipient of a gift card to a store that I never shop at. That was more of a pain than an unwanted item. It's like handing someone $25 cash and telling them they can only spend it on something they really don't want. Some gift that is.
So if gift cards are given with proper thought as to what the recipient would actually like, I think they are perfectly fine. But if they are just given out blindly, they can be lousy gifts.