I'm trying but not fully there, but I do think it's a balance.
We do buy DDs Christmas pyjamas but they use them throughout all the winter months so they usually get them end of November. This year I've bought them from Vinted so they're second hand and I'll pass them on once DD2 has grown out of them. The same with Christmas jumpers..... I buy from Vinted.... they're always in excellent condition as they're hardly worn!
They don't have Christmas bedding but they do have blankets, but more of a winter style rather than just Christmas. DD1s is tartan and DD2 has snowflakes on hers. I'm glad of them this year as they'll help keep them warm in bed if we have the heating on less.
I agree with small stockings. DDs have had the same ones since their very first Christmas and they're pretty small. They always get consumables or useful things in there. So a new toothbrush, chocolate buttons, bath bomb, magazine, socks, hair slides, crayons, sachet of hot chocolate etc.
They definitely still like plastic tat but I buy that second hand from Vinted, eBay or Facebook marketplace. This year I've got DD1 a playmobil doll's house from marketplace and DD2 a Frozen playset from eBay. They'll love them but I'm much happier buying that sort of thing secondhand both for environmental reasons and the fact it is much cheaper! They don't care about it being secondhand, I doubt they even notice really as I'll just set it all up on Christmas Eve and put a ribbon on it or something rather than wrapping it up.
Any wrapping paper and tape is recyclable or I keep gift bags I'm given and reuse them the following year. I try and buy wrapping paper in a style that is festive but can be used for other occasions too throughout the year so red, gold, silver, striped, tartan etc.
DH and I agreed a few years ago to only buy useful or consumable gifts for one another. Things like a bottle of booze we may not normally buy ourselves, candles, socks, house plants, things for the garden, chocolate, perfume, a book etc.
I'm quite strict with regifting and do so without a second thought. If any of us are given a nice present but something we won't use or don't need it gets put in the regift box and used another time for someone else. If we don't think we know anyone that would appreciate it, it goes to charity.