The great thing about gift cards is I can pick them up at Kroger or CVS for all kinds of places (restaurants, Bed Bath & Beyond, Linen's & Things, movies, etc). I always keep an assortment of $20 and $25 gift cards on hand for births, weddings, graduations, etc of those folks that I'm not close to but a gift is expected.
I'll definitely be giving gift cards this year to extended relatives. Saves tons on shipping!
And of course, as the mother of teenagers, teenagers LOVE gift cards! And I like for people to give them that rather than cash or checks. Checks all go into their savings accounts. It's just a rule. And cash they end up spending on junk like candy and soda at school.