Don't feel bad about giving the gift cards. That's what I plan to do with relatives that I would have to mail things to (and why not give the recipient the full allocation of the gift monies instead of having it depleted by UPS and USPS by shipping large or heavy objects to the intended domiciles?) I understand that sending cash or a gift card is basically admitting that you have no idea what to get that person, but isn't it also more considerate to allow them to get something they actually want instead of saddling them with something they don't? The fact that doing so may be good for them but bad for you is the height of selfless giving, I say. Besides, some people have told me they much prefer gift cards, so it's not an absolute rule.
I've also obviated the whole logistical problem of gathering for the holiday photo by just doctoring photos taken previously in the year for the occasion and that seems to have made that chore a lot easier as well.