Wow, that is a crazy amount of presents and money spent, IMO. No way I could afford to do that once, let alone every year.
I would absolutely say something. It's not tacky, it's honest.
How about baking a few big batches of cookies to give as gifts? And I like Richard's idea of coupons. Make one for something each person really needs or wants - could be an few hours of babysitting, a home-cooked meal, pet-sitting, house-cleaning.
All spring and summer, I go to yard sales, with the sole intent of buying gifts for Christmas. I almost always have my Christmas shopping done by fall. And, because I'm not in a rush, I always seem to be able to find the perfect gift. Example: I got my nephew a huge plush blanket with his favorite Nascar driver on it. It still had the new price tag on it - $69. No way I could have afforded to buy that for him new. But I paid $2.
And, for me, I honestly do not want or need anything else. I really dread getting stuff from people who don't know me well or don't spend the time to really think about what they are buying. I have a house full of stuff and if I really want something, I go buy it. There comes a point in our lives where we just don't want or need anything.
"We give dogs the time we can spare, the space we can spare and the love we can spare. And in return, dogs give us their all. It's the best deal man has ever made" - M. Facklam
"We are raised to honor all the wrong explorers and discoverers - thieves planting flags, murderers carrying crosses. Let us at last praise the colonizers of dreams."- P.S. Beagle
"All that is gold does not glitter, Not all those who wander are lost; The old that is strong does not wither, Deep roots are not reached by the frost. From the ashes a fire shall be woken, A light from the shadows shall spring; Renewed shall be blade that was broken, The crownless again shall be king." - J.R.R. Tolkien
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