I think it's good to put a bit of time and thought into an imaginative compromise: e.g., and as others have said, the Secret Santa idea.
It may be that you still come down on the side of Martin Lewis's sensible idea, but, I think the timing and how you say it needs some consideration. I only say this, from experience, as, we had a few years of this in our family - between siblings and their partners, and I kind of thought it was a bit unsentimental, and, perhaps we all did, as we went back to giving gifts, in the end. The idea had been kind of foisted on everybody. That was years before these recent economic-gloom years, so now is largely different.
I suppose the best idea would be something inexpensive and unusual - even home made, but this would be not easy to find to suit every recipient. Young adults could be given a really cool boho purse or wallet, such as you wouldn't find everywhere, and from a market stall, but which is really desirable. An ideal would be those models, like of cars, made ingeniously out of ripped up coca cola cans - a real talking point.
Food or drink can always go down well. Something which covers all bases, can be homemade ( by someone) biscuits. Also alcohol or cordials which can be used for entertaining.
Smaller and generic presents on a budget are pretty well covered and sorted by M and S and TKMaxx, I always think. M and S have those musical box biscuit tins, some which light up, and TK Maxx had those soap in beautifully decorative boxes where the boxes is a musical one which plays carols.