I think the best gifts are consumable gifts. They are useful, pretty, thoughtful and environmentally friendly. And it`s the kind of gift your recipient doesn't have to worry about displaying... you know, like that sculpture you have to take out when that person comes over... and then if you forget - yikes! So inconvenient and wasteful!
With consumable gifts, consider what the person`s real tastes are. Coffee and tea are great for most - spoil them with extra special tea bags and specialty coffees with gorgeous packaging that you know they will appreciate. Cookies are always a treat for anyone and if they don`t like them, they simply share them with guests. And soy or beeswax candles are a gorgeous treat for anyone.
There is nothing to make space for, just stuff to enjoy - simply and easily. Consider that for your holiday giving!