DIY knife block - glue together the covers of some interesting books at the thrift store and secure them with twine. The tight pages of the books hold the knives in place. Plus at 4 dollars total cost, easily affordable when the books start to shred.
On the theme of decorated notebooks. what about a travel journal to give to a travel-loving friend? (something to write notes in, glue in maps before hand, etc) or a prayer/hope/wish journal, recipe (Diy Photo Art)