Different people do different things. Because they have different cultures in different countries. And families like to do things differently too. Just like birthdays and other special days are different. (And some people have lots of money, or are great at crafts, or love doing fancy meals, or do lots of things outdoors, while others like a carpet picnic with a movie another time etc).
We never did an Elf, although they were starting to happen. But I occasionally arranged DD's teddies and dollies to be sitting around her Santa teddy who was reading a Christmas story (we had a few books and used to borrow some from library too). Or having a tea party with her tea set.
Our letters to Santa went up the Chimney - Friends posted theirs in the postbox, other Friends gave them to Santa when they met him in Grottos (the Santa we met at a work party didn't have anything to do with letters - that was for the Elves to manage). And a few were also getting emails or videos from Santa. And a couple were sending theirs by Elf Post through their soddin' Elves.
I bought bags of choc figures to put in the fabric advent calendar that DM had made her when tiny, and sometimes added a note about an activity, or a free printable colouring or activity sheet, or clues for a treasure hunt around the house to a small treat.
Up to last year, we still did the CEH - (we're travelling this year so won't - but likely will again when home here). It was a cardboard gift box we'd been given that normally holds our collection of christmas books and DVDs, but works well for this purpose on 24th. In it, I put DD's stocking, her plastic toddler Santa plate and glass (to put out santa's snack), new PJs for everyone (winter - they've very rarely been festive themed but get very well used!), a festive bath bomb for DD and I and a Christmas beer for DH. And the "lump of choc on a wooden stick" hot choc for each of us.(as we like a lot of hot choc in winter). DD turned 16 over last Christmas.
When she was a toddler, she had 1 plastic plate, bowl, glass, mug set - but with both of us WFTOH, we were constantly washing it. So when I saw a festive themed one with her first birthday coming up, I bought that. The original has long since hit the recycling bin, but we keep the Santa one with the decorations to use in December/early Jan every year, or now for visiting DNieces/Nephews and Santa.
Some of the activities we used to do when she was small cost a bit, some were free, some took a lot of time while others were quick, some required me doing stuff beforehand or crafting or similar while others were simple.
We are also a house who don't believe every gift has to be "fun" or toys. There are often clothes included, or practical things like character toothbrushes or knickers (as Mum would never have bought those so must be from Santa), a slightly fancy version of something that was needed anyway like nice stationary for school, or the next size up of bike.
Christmas is stressful and expensive.
You do NOT need to do everything the same as everyone else.
You should NOT spend more money than you have in your budget (and preferably ONLY spend money you have saved and not go into debt).
You SHOULD find ways that are meaningful to YOU AND YOUR FAMILY to celebrate.