A majority of digital picture frames purchased are given as gifts. (Honestly, I'm not sure if this is a factual statistic or if it's just what I think is true.) There is something very cold and impersonal about digital picture frames, however. That's where GiveaDigitalFrame.com comes in.
For $129, you pick an occasion, write a personal message, and upload up to 30MB of JPEG images to the site and the company sends out a gift-wrapped 7-inch digital frame along with a 1GB SD card loaded with the images you uploaded. Shipping's included, too, so all in all it's not a bad deal, assuming the frame isn't complete crap. It looks nice at the very least.
Both the frame and the SD card carry the manufacturers' warranties (one year for the frame, lifetime for the card). The site just launched, so I haven't used the service and I'm not endorsing it, but I might just give it a shot this holiday season.