I have 3 nieces and 3 nephews. I spend no more than $20 per child for Christmas/Birthdays.
One SIL spends about the same amount on my kids, one SIL sends cheap junk late (I'd rather that she just didn't bother), and my stepbrother doesn't send anything for my kids.
For my nieces and nephew who are distant, I usually just send a gift card or $$$. In the past, I've spent just as much on shipping as I have on buying the gifts -- ugh!!!
As our kids get older (and our home is overrun by toys & other STUFF), it would be nice if we could get away from some of the gift exchanging (maybe all of the local family go to see the Rockettes or something instead) that goes on at the holidays.
Edited to add: I've yet to have one of the nieces/nephews thank me for a gift. I often don't know if the distant relatives even receive their gifts. I know for a fact that the local niece/nephews break and/or lose the pieces of most every gift within a day of two of reciept.