I taught myself how to make soap from scratch, with lye. If you can bake a cake from scratch, you can make soap. Even my first attempts, while not spectacular were decently useable. From there, I branched out to making bath bombs, bath teas, and occasionally lip balms. To get started on soap making, visit http://www.millersoap.com/, or feel free to PM me. It's a wonderful, addictive hobby, and I've gotten tons of compliments on stuff I've made from friends and family. :)
If I had more time to sew, I'd do more sewing crafts. I did make tulle dress-up skirts for my nieces, and they were a hit for Christmas, but not much sewing was needed. :)
For myself and for giving family/friends, I love practical nice looking things. I'd flip for a set of homemade napkins or placemats for example.
One of the best gifts I ever got (well, really it was for my son) was a set of homedmade fitted cloth diapers. My friend made me 6 to start us off with. I treasure them, even though he doesn't fit in them any more.
Edited to add: If the lye is intimidating, you can buy melt & pour soap. But I love good homemade lye soap, and I'll bet your family will too! :)