While cash is the most useful gift, gifts aren’t a utilitarian practice. A gift is an opportunity to show someone that not only do you really know them enough to choose something they would enjoy; but also that you’re thinking about them, and that they are worth effort and thought to you.
Of course, good gifting gets harder as your giftees can afford what they want on their own, but that just makes the sentimental aspects even more important (in my opinion).