I don't know how I feel about "upcycling" a book and book crafts in general but this is pretty cute! Upcycled Zippered Book Clutch – Free Sewing Tutorial by See Kate Sew + Upcycled Sewing Projects by Betz White
Great idea as the kids wait for their turn to open their gift! - "Color Me" Interactive Gift Wrap for Kids - wrap a gift with plain white paper, and attach crayons instead of a bow. Stamp the words color me, and let your kid decorate their own gift.