Hmmm this is a very interesting thread. When my girls were younger (now they are 10 and 6) I didn't spend too much but I do go a little mad at Xmas. I only spend £20 each for birthdays.
Last year DS who was 9 got a mini laptop for £200 and games for her DS etc. Younger got a dolls house and a bike, however both sets of parent's give us £50 each so this helps enormously.
I also wrap every teeny tiny thing so the pile looks nice and also I save all year for Xmas in an Xmas club.
This Xmas DD1 has asked for a bike (approx £80)and some books, a DS game and a PS3 game (the PS3 is DH's).
DD2 has asked for Harry Potter Hogwarts (bought for £99 although I paid less as had been saving my tesco vouchers). They will both have presents like dressing gown, slippers, nighdress, bubble bath, books etc.
To the person who said children don't appreciate, my children do. They are good savers and they have toys going back to their first birthdays. Everything is well taken care of and they look after games/jigsaws etc.
They also now and then give away toys to less fortunate, or sometimes sell on ebay and save the profits.
As we are going to Florida next year, they understand that there won't be as many presents this year as Santa only brings some and Mum and Dad buy the rest.