For the Want/need/eat/read, the "need" is that I do things that are useful and often developmental, but maybe a little bit nicer than normal or something they wouldn't expect from me. And the same with an element of the "want" as well.
So craft consumables that get used up - crayons, nice pencils, good art paper, ....over time the quality improves as the skills of the child improves. Or it might be a better set of tools like decent paintbrushes rather than the small child versions. Or proper craft markers rather than regular felt tips. That sort of thing.
Fun things that work on skills they need to develop - like a nice lacing game when small to work on fine motor skills. Games that are not just fun but need some application of logic or working on numeracy (how many hotels do you have and how much rent to do I owe you (monopoly)? how much is this word worth (scrabble)? how can I eliminate things to check my guesses (cluedo)? etc). Things that allow an imagination to flourish - lego bricks, magnetic building or meccano, circuits. Or to build their knowledge of STEM etc like chemistry sets, binoculars and a nature book, compass and a magnet, ....
It's not about making learning dull or making the stockings/Santa all about boring things, but giving them some things that will help to develop specific skills, as well as plain old fun and games.
And while a need might be "a hoodie", a want might be a specific type of hoodie, or a fun surprise would be a cool design they don't expect or a brand they like but wouldn't normally get or whatever. I don't see anything wrong in clothes being Christmas presents. Especially if they are part of an overall bundle of things.