From the very beginning, my little one loved books. Her first favorite wasn't that great of a story, but it had bright colors and a familiar face at the end in the form of a mirror. :) We blogged about her love for Circle by Little Scholastic, and that was the beginning of the Baby's Choice series on propernoun dot net. From there, we have blogged about a library visit, reading aloud, and early literacy. Sandra Boynton, Leslie Patricelli, and Lucy Cousins are familiar names around our house, and they all make great gifts for babies or toddlers.
I love the idea of pairing a book with a toy for a fun (educational) gift. Here's an idea to get your young ones learning about patterns and engaging in imaginative play.

For parents or those about-to-be, Amazing Baby by Desmond Morris is a great choice. It is full of fascinating facts about child development and beautiful photographs of babies.

Any other ideas? Feel free to share!