On the one hand I totally agree with you, on the other hand there are some people I know who I find it insanely hard to think of a gift for and often end up thinking I may not have made the right choice - there are also people who presumably think this about me, given how much they will nag ahead of birthday/Christmas about what I want to receive.

Overall I come down on your side, in thinking the downsides outweigh the benefits, but I can see how people would come to the opposite conclusion too.