I understand the OP's pain on the gift...my DH's family used to do a gift exchange and 3 years in a row the same aunt got my name. We gave gift ideas with the exchange and I was pretty easy with my list - something Disney, dinner gift card, etc.
I was very diligent in my shopping...I made sure that I got what the recipient asked for and am such a good shopper that I was usually able to get several of their suggestions...the girls told me once that they were always relieved when they would find out that I had their name.
So while I was out, thoughtfully picking out gifts, this aunt was not. One year she bought me winnie the pooh pajamas from the
disney store - which seems awesome but she bought a 2x for me...I wore a large. And they didn't run small...when I held them up, I almost started crying at the thought that she could possibly think those would fit me. She clearly just went in the Disney store, grabbed a gift and bought it. It was a joke with the cousins that maybe she thought my DH and I would both wear them. I tried to exchange it but they were all out and all they could offer me was a $3 store credit. As luck would have it, I got pregnant that year and at 9 months pregnant, they were the only pajamas I was comfortable in.
The next year she gets my name, she gave a Christopher Radko ornament. For a $50 gift exchange. Nothing else. I looked into returning it. When I opened it, I didn't even know who Christopher Radko was. So I researched the ornament and turns out it was retired - for like 15 years...in other words, she pulled it out of her collection and gave it to me. It wasn't even in an original box. Just wrapped in tissue in a Kohls box.
The 3rd year, she thought she had someone else's name and brought a gift for them - so as everyone opened gifts, I had nothing - so she just took the name off the other girl's gift and gave it to me once she realized what happened. No apology. I don't even remember what the gift was but I decided that was my last year in the gift exchange.
Thankfully, I didn't have to opt out as my MIL told me that she did not expect me to continue participating after that.
So I do understand the frustration that if you are in a gift exchange that some people are really thoughtful and buy great gifts and others aren't. It kind of stinks being the one spending a lot of time to get the perfect gift and getting a bad gift in return. I think what ends up happening is that people stop putting the effort in and then it seems like a lot of money wasted.
My DHs family has abandoned the whole gift exchange anyway, which makes me happy b/c in the end, all that really matters is spending time together!