@Reyn,
It seems to me, for both adults and children (but especially children), the thrill of anticipation, the waiting for that special present is gone.
Now, one can just whip out a credit card and buy on a whim. I don't have a problem with using credit cards, as I use them responsibly, so that's not the issue.
It's that for kids, unless they're really small, they know an item can be bought at any time, and be given to them. No one has to lie in bed at night all excited about waiting "just 5 more days until Christmas" to see what delights are in store.
Als0 (and this might be my old age showing, I am 50 you know), all the "techy" gifts, ipods, video games, iphones etc. just don't seem very holiday-ish. I think part of it is that if you get/give a tech gift, the user immediately starts fooling with it, thus cutting themselves off from everyone else.
When I give someone a gift, I try to make it one that they would like, but wouldn't think of going out and getting themselves.