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I think it shows that the person put a bit more thought into the gift... Or its a way of giving them something nice that they want but wouldn't necessarily buy if they had the cash.
For instance, when in college if people gave me cash, i'd generally use any cash i got for something i needed like food, gas or to pay a bill, but if i got a gift card to some place like bestbuy or a game store, i would end up getting something i'd get some enjoyment out of instead of doing the 'responsible' thing with the gift of cash.
Gift cards these days seem to be more of the easy way out to gift giving... Especially when almost every checkout stand now bombards us with cross merchandised gift cards for other retailers. I prefer gifts that have thought in them over a dollar value, so i hate that trend.
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