My son was born two days before Christmas - very hard to shop for a 2 day old baby
I decided that I would purchase savings bonds for the kids on each birthday - one grandmother buys them savings bonds for Christmas and the other buys them shares of stock. Any young children that I buy Christmas gifts for gets a $50 savings bonds and a small gift to open - usually a book or an outfit (total cost: about $30).
Honestly, I was never a big fan of the keepsake ornaments. Maybe my kids will enjoy them when they get older - maybe not. But a new baby will probably get plenty of those for Christmas.