This is the first year that we ever scaled back on Christmas as well. With a 9-month-old, who probably likes the boxes more than the toys themselves, and the fact that both of my parents AND my brother are in trouble financially, we floated the idea of no presents (except for the little one if they REALLY wanted to). My Dad, who would rather get a 2nd mortgage to pay for presents than forgo christmas, actually agreed... reluctantly.
My wife and I stuck to "stockings" for each other, so that we didn't spend too much. It was great and was a lot less stress. My inlaws took my "the boy likes boxes more than presents" idea to heart, and made an "activity box" that was a giant box, with some portholes cut in it, with pictures of family securely taped to it, different color shapes taped to it, and even a small mirror securely fastened on the inside. Our son LOVES it.
It was actually funny... my inlaws are pretty frugal people, and when we told them that we were doing no presents for Christmas with my family to make things less stressful, they lamented "Is that deal on the table for us?". Too bad we had already gone in with my wifes brother and wife on getting them a lower-end digital camera to replace theirs that was literally falling apart.
Maybe next year will be completely present-free.