2 yrs ago, I bought I-spy bags for all my friends' children. Last year, it was crayon rolls. What's new in the crafting toy world? All my etsy searching is coming up...blah. (except for super-expensive things - I'm looking into the $10-20 range, mainly)
Last year, I bought a large set of recycled shaped crayons for the children at my son's daycare. I went to our local printer and got pads of paper made from scrap quarters (they have a glue binder that makes a pad), so each child had their own little pad of paper. Any suggestions for a class gift this year?
This was posted by another poster, but I really like this idea- soap crayons
. Your school kids could even make them themselves (although I haven't tested them, so I don't know how hard it would be).
As far as the "homemade toy of the year"- I would check with the homemade christmas craft thread on the main page. Lots of people are making lots of different things. You can browse there and probably find lots of ideas.