What about a pull string pinata or 2? Kids love those, and with the pull string, you don't have anyone swinging a bat around.
You could also do small gingerbread houses with graham crackers and milk cartons.
For fun crafty ideas, you can check out Family Fun website. They have lots of fun ideas.
One thing we did for my daughter, was get sugar cones, and put them upside down on a plate (pointy side up), frost them green, and then let the kids decorate them like Christmas trees with licorice, m & m's, silver dragees, etc. It was cute and her friends really liked doing it.