I have heard it said (I think on this board) that babies, young toddlers, aren't yet able to understand the concept of gift giving, so pre 3 or 4, so there may be no value in doing this with your son, at his age...
When the kids are older and able to understand the value of giving, then the "hand made" gifts are great. It's very personal and obviously from the child.
But... that being said, I don't know if I've ever seen a "gift" from a young child backfire as being pursuing by the LBS... unless it is something extravagant...
