I second the diapers, but think newborns are fine. My DD was 8lb 10 ounces and in newborn diapers for 2 months. I always get swaddlers in either NB or size 1.
Things we found most useful: Medicine syringe, baby nail clippers, thermometer, wipes, lotion, shampoo, soap, bibs. HTH!
BTW, baby powder is no longer recommended for use as it can contribute to asthma if inhaled. I'd also skip the pacifiers as we have tons that were unused since DD wouldn't take one...Ditto with bottles. We had a brand we used for EBM (AVENT) plus I nursed mainly so all the other brands were unused. We also never used any diaper creme. DD never really had diaper rash, and we used the tube we got from the hospital the whole time she was in diapers.

I think if it were me though, I'd still buy it for someone.