Ha! Another Navy Officer's Daughter here... who NEVER knew we were poor growing up. Ever. Even though we were below the poverty line, always, looking back. Officers make less than teachers (significantly less), but we had it soooo much better off than enlisted families. That wasn't why we didn't know we were poor, though. We didn't know because my parents rocked. Mayo sammies for a week (because of course, officers "can't" be on WIC/stamps even though we all qualify) was an "exciting" thing in our house (Oh boy! Kids! Guess what WE'RE going to do?!?!). As was mac'n'cheese for dinner for a week. And stateside Dad would commute an 1-2 hour+ each way so we could live in a biggish house with a yard...Anyhow... cool parallel aside.
It REALLY depends.
I save a lot of our "needed" things for xmas. New clothes, blankets, cooking things, house stuff, electronics... ALWAYS gets wrapped up and put under the tree or into stockings.
A lot of our "big" (kids) gifts are actually super cheap, so it's a hard thing to quantify. The $250-$300 Flip we got for $50 (cybermonday, I get almost every electronic year round on cybermonday). An ipod was a handmedown (free). We buy year old games ($15 instead of $60) for the xbox, the xbox360 itself is a refurb one that we got for 1/3 the price. Classes and memberships (like lift season pass, or zoo membersip, or drama camp) we'd be buying anyway, but this way they're all exciting to "find" what cool things we get to do this coming year. These are all examples of 'most wished for' presents in our house. The feather blankets/pillows/etc (fun to wrap) are from IKEA (as is a lot of the cooking stuff) which is super cheap. I very definitely go for VOLUME, but it's not "junk". It's mostly stuff we need/use EVERY DAY.
This year, we have quite an expensive gift coming from Santa, because our TV crapped out on us almost 3 months ago. Instead of replacing it... Santa is going to bring one in 2 more months. It will be a family gift (like the xBox), and for now we get along without one (computers make that not much of a hardship).