One of the coolest things my kids got for Christmas is a snowman kit in a wooden box. It has a felt hat, scarf, and corncob pipe. The eyes, mouth and buttons are made out of wood with wooden dowels so the kids can stick them into the snowman. It would be pretty easy to make. The wooden box that holds it is the same type you could find at the dollar store and paint in a winter theme.
My kids also love dress up stuff. They play knights, Star Wars, pirates, cowboys, and WWII. Their knight stuff is all home made...chain mail vests from frozen OJ lids, swords made from wood and PVC we had in the garage, shields made out of plywood from other completed projects, and helmets spray painted silver from old milk jugs. Pirate clothing is easy to make from old pieces of material if you can sew.
Good luck! Let us know what you come up with.
M.