My Husband has an iPad.
It is a "family" iPad.
It does not "belong" to my kids (who are 6 and 10), but we all use it, including me. My kids are responsible and not addicted to it.
We have had it for at least a couple of years.
My kids have never had tantrums over it or over not being able to use it.
We have rules about it.
They know what they can or cannot do, with it. They are kids. Not adults.
They know that.
We... DO NOT LET THE KIDS DOWNLOAD ANYTHING. Period.
It is for us, as the adult, and as the parent... to decide, IF we will download something or not, for the kids. My kids know that "rule." They also get taught at school, about internet/computer safety and dangers.
They are informed. And we inform them too. As parents.
To download things, there is NO way, that a child should do that. Because... they do not know what an app may cost, or if it is free. Unless your nephew can competently read very well... and KNOW that asking permission of his parents, is needed.
The parent, should be... supervising what the heck is downloaded onto the iPad. And, a parent can put a "lock" and password on the device, so that, the kids cannot download things willy nilly.
We do that.
You, are not obligated to get your nephews expensive gadgets for Christmas. That is the parents problem or responsibility. And if the kids are "spoiled" well, the parents have to deal with them.
There is no way, I'd get my own kids $250 dollar sneakers nor the newest video game system. That is an ADULT, parental, decision. Not a kid's decision.
As I said, my kids are 6 and 10. They do not have their "own" expensive gadgets. They have hand-me-downs. My Husband is a tech guy as a hobby and as a job... but so he sometimes has older versions of Apple gadgets, that he will give to our kids. BUT... again, there are RULES about it... AND, they always know to ask us FIRST... for any games or apps they want on it. AND they cannot just download anything themselves. WE as the parents, do that. If we know that the app they like is kid appropriate.
Don't let your nephews, dictate, the money amount or type of gift you get them. They are KIDS. I certainly would not keep up that "habit" and their sense of entitlement.
If the parents don't teach them rules or appreciation or standards about what their kids get or what they can do or not, well... then you have kids that won't respect rules and will expect inappropriate things.
Just because your Nephews are "spoiled"... that does not mean they have to put you and your Husband in an awkward position on what to buy them. Their parents... are responsible for that. Not you. Don't let your Nephews control you, or how you gift them.
Get them books.
Or adopt an animal from your local zoo, for them, if your local Zoo has programs like that.
Do something non-materialistic.
Your Nephews, are what the parents are allowing... them to be.
That is not, your problem.
Remember: They are kids. YOU are the adult.