I think you should go for it! I love that your idea is different. It is definitely unique.
Make sure your giftees are aware of your gifting plans this year. I mean, you don't want Friend A to receive a gift of useful household items and have them think Friend B got a plate of baked goods.
Include cleaning cloths if you give cleaning items, like a package of paper towels or sponges.
Check out household cleaning websites like "101 uses for baking powder/vinegar/lemon juice/etc". You might be able to find some ideas there.
Put baking recipes together. Leave out the wet ingredients and attach a card w/instructions on how much wet ingredients to add and how to bake/cook . I have received "cookies in a jar" before where I dump the jar of already measured out ingredients in a bowl and add my own eggs, milk, oil, etc according to the instructions. I'm sure you can do the same for staples like bread or side dishes.
I think a cute idea would be to make your own detergent, soap, etc, put them in bottles and make up your own "Made By..." labels to put on the front.
gl. Like I said, I LOVE your idea. I think its very practical.