Man, re-gifting is the worst! It's hard to do it tactfully - not that it ever is "tactful", but even Miss Manners condones it if she thinks you're "bright enough" and "classy enough" to do it.
Anyway...My parents have taken to only buying small gifts for the kids (I have a TON of cousins and step-cousins), and getting something like chocolates, or popcorn tins, etc for the adults. That way everyone can enjoy, and money isn't spent on something they might not use. Grandma and Grandpa get "big" gifts, but other than that, my parents' philosophy is that they can take what they are given and smile, or they can be mean about it, but it doesn't phase my parents in the least. The only thing that phases my mom is this family who is only related through marriage who continue to buy us [nice, thoughtful, relatively expensive] presents.

She says it stresses her out because people who aren't related to us shouldn't worry about us at Christmas. I guess...the Christmas spirit of giving is somewhat lost on my mom after 24 years of having to put up with my dad's side of the family (horrible people when it comes to this stuff, lol).
Now I'm worried as to how I'm going to be when it's my family and my in-laws...eeshk...