Wow! Those are great ideas! My 18 month old is just now getting to the point where we could try something like that, and I LOVE the ornament idea. Too cute!
I have a really neat book called Family Fun Home, and it has an idea for making placemats that you could easily adapt for a Christmas gift. You would just have your toddler draw on a piece of 12 x 16 poster board and cover with clear Con-Tact paper (or laminate). Easy!
Another fun idea from that book is no-sew scented coasters. You need 2T each of ground cinnamon, ground cloves and ground nutmeg.
You also need 1/4 yard printed fabric, a 9 x 12 piece of felt and 1/4 yard of tightly woven muslin, and some fabric scissors and tacky glue. (Pinking shears would be cutest!) You mix the spices together and set aside. Then cut out eight 5-inch squares from the printed fabric, four 4 inch squares from the felt and eight 4 inch squares from the muslin. Place four of the printed fabric squares right side down on the table. Top each one first wiht a felt square, then with a muslin one.
Sprinkle a spoonful of the spice mix on the center of each muslin square, then apply glue along the edges of the muslin. Top with another muslin square, lightly pressing the edges together so they will hold. Next, apply glue to the edges of the printed fabric that extend beyond the muslin. Top with another printed fabric square, again lightly pressing the edges together. Let the glue dry, and they're ready to go.
If you pre-cut the squares and helped with the gluing, I think a 2.5 year old could make those!
And he/she would probably love picking out the fabric.