Many companies are now using crumpled plain brown paper instead of styrofoam peanuts when they ship merchandise. Instead of putting the brown paper in the recycling bin make Christmas gift wrap. Iron the wrinkles out of the paper, using the highest setting.
Spritz with water if necessary. Lay the paper out flat until cool and dry. I like to use it plain, with Christmas plaid ribbon - especially for the men and boys. The presents look great under the tree - especially if you like a country theme. Or give a sheet to each kid with paint and rubber (or potato) stamps and let them decorate the paper.
I use the paper also for birthday and Father's Day gifts for the men and boys - raffia makes a nice "ribbon" with it.
Yarn makes a great, inexpensive ribbon with this type of paper. I like to get two colors - like dark green and burgundy, put a bunch of strands together, and tie a large, floppy bow. It is easy, and looks nice. If you have someone who knits or crochets, they may even be able to recycle the yarn!
Similar to this, I've opened up brown paper bags, turned the printed side down and painted red and green plaid on the plain side. This is very quick and easy - the lines don't even have to be straight. Tied with raffia or yarn, this also works great as a male gift wrap.