I think it is impossible to judge on what other people spend on christmas because it also depends on lots of other variables. Obviously what you earn and how much free cash you have got is a major factor, but there are also other factors...
Do you buy gifts all year round? I have friends, and indeed have seen posts on here from people who buy gifts for their children when they see them in town (sometimes, every time they go into town). I would never do that - if ever I see anything in town that I know DDs would like, then I pick it up and put it away for Christmas (This year, I started picking things up in January). So my DDs get a lot at Christmas, but that is the one time of the year they get given presents - I virtually never buy toys in town during the year, yet lots of other people do. Those toys that other people give all year round would always go in my christmas stash!
A second varying factor is what makes up the presents. My Dds get a lot of stuff, but a lot of it is practical too. For example, DD2 has got vests, pants, 2 pairs of jeans and two packs of new tops in her Christmas sack. Again, most people would probably just give them out as and when needed, but I usually buy the next size up and put them in the sack... in fact my DDs have not had any new pants or vests since last Christmas (given as presents, then put away until needed). Again, a lot of people who spend less than £50 probably do not include such things in their presents - after all, a pack of socks, vests, pants and pyjamas for each child adds up to about £15 - 20! All the 'essentials' are given as presents at christmas - tootbrushes, flannels etc etc... things most people just give all year round (I do too for toothbrushes obviously, but what can be held back to Christmas, usually is!)
A third factor is when you start buying. I pick things up in the sales and buy something every month throughout the year (I start in January!). I don't spend much, just a fiver or a tenner or so and this might mean getting a couple of tops in the next january sale, or some toys in the 70% debenhams summer sale, or whatever it is. Again, I have never gone into debt for Christmas, and would not put it on the card - but as I get things in the weekly shop (my rule, only buy things that the girls would really like and have at least 50% discount!) and then I never really notice the money going and I don't have a huge amount of money to find in december, because even by now I have almost finished my shopping. I will just now get the girls' big presents now. If I only just started my shopping, then I would probably have to have a budget of about £50 too, because I just couldn't find that sort of money out of thin air - but I don't I just squirrel away little things and then at Christmas, go to the stash and find that I have almost finished getting everything!
A fourth factor is how much you spend on birthdays. My inlaws spend much less on Christmas than my family do, but spend a similar amount on birthdays - whereas my family only spend a bit on birthdays and most of the money gets spent on Christmas. In my family, birthdays are about the party / celebration - so with my DD's birthday on friday, she'll only get about £25 in presents, but she has a big party instead - whereas other people even the spending out over the two events - therefore spending less on Christmas, but more on birthdays. I even know of some people who spend more on birthdays than they do on Christmas, so only get their DCs little presents at Christmas, but they get most of their presents for their birthdays...
So, with all these variables, I don't think there is a right way of doing things and it is impossible to judge, because you cannot judge whether someone has spent too much / not enough unless you know how much they spend on birthdays, all year round, how much pocket money they give, what the presenst include and so on.... Therefore, I agree that the woman in the OP was being VU.