iPhone 4 is everything they're wishing for—all in one gift. And it's unlocked and contract free, so it works with the carrier of their choice. Reserve iPhone 4 for pickup at the Apple Retail Store, or shop online and get free shipping.
Curiously, clicking on the "Reserve iPhone 4 for pickup" brings you to a page that tells you iPhone 4 isn't currently available for reservation and is instead first come, first served.
Obviously this doesn't apply to anyone in the US since iPhone is still locked to AT&T there, and may stay locked even if it goes to Verizon in 2011. (Bah, humbug!) Still, would you go with the $650 or $750 unlocked model if you could? Or is $199 or $299 on subsidy, along with some Jailbreak/Unlock help from TiPb, the limit of your Christmas cheer?