On gifts, we spent a lot less. My side of the family (brother, father and mother) all have financial troubles right now (underemployed, forced "retirement" with no savings, and divorce, respectively), and I told them that no presents were necessary this year and that all I wanted to do was to see their ugly mugs. They each bought small gifts for our 9mo old son, and my wife and I decided to fill stockings for each one of them to make it feel like Christmas (<$50 in small useful gifts in each).
Unfortunately, due to their financial troubles, we took it upon ourselves to pay for flights for the 2 that were not remotely within driving distance. I considered the alternative of not having them here for my sons first Christmas, but that just didn't jive with us. Maybe when my brother finishes his medical degree and is a big shot surgeon, he can pay me back. If not, no loss here.
It was a jolly Christmas.