I would not give gifts if I didn't want Easter to be a gift giving holiday, but I also wouldn't say anything to DH's relatives and I'd accept their gifts graciously. If that's what they've always done, let them do it. In this case, what they're doing isn't "out there" or unreasonable, so your vision of the holiday shouldn't trump theirs.

To answer your question, my family doesn't do big gifts, just an easter basket filled with candy and sometimes a couple small gifts.

I make a basket and it might have a few small toys / gifts in it but I don't go out and buy something to give them apart of it. This year each of the plastic eggs has an item in it other than candy. Things like chapstick, a hatchanimal egg, and 5 dollars. The basket itself has more candy in it and we're doing multiple egg hunts between now and then so they'll get alot of chandy from those.

My parents did an if it can fot in the basket, it is good for Easter.  So we'd get candy, a peice of jewelry, a barbie doll or a toy and a coloring book. 

This is weird. I saw an ad for Target the other day fo easter gifts and there were ipads and video game consoles. I was like wtf. Everyone I know basically had baskets with candy, maybe a little toy, an outfit like you mentioned sometimes....maybe bunny pajamas or something.

What does your DH think? This is his family and his traditions. Does he want your mutual DD to participate?

If he is fine with it and wants her to participate, then yes, as CG said above, this is an excellent teaching opportunity of how families celebrate things differently. I wouldn't use the word "weird" to describe it, and I'd discuss with DH how much you all want and can afford to spend on his holiday tradition.

If he doesn't want to participate further in this, then HE can address it with his family. Not you. Never you.

Put the shoe on the other foot: how would you feel if there was a family tradition on your side that DH thought was odd and didn't want DD to participate in solely because it wasn't what he was used to? Would you want him to say something to your family? Or tell DD she couldn't participate? My guess is no.

Your DH is an equal parent, and his family is equally DD's family. The lesson in this is that everyone is different, and that is okay. The lesson is not that just because you find it uncomfortable or odd that it's wrong, and therefore DD shouldn't participate.

For us Easter is more of a religious holiday so we only do minimal things like easter eggs and some chocolate.  We minimize the "present" aspect of it so as not to turn it into Christmas part two.

I hate that Easter is becoming such a huge gift-giving holiday. I've always given my son a basket with candy and his favorite snacks, and something small like a DVD, book, or funny t-shirt. We prefer to focus on the meaning and spending time enjoying a nice dinner with family. I was shopping with one of my work friends this past weekend, and she spent at least $200 on each of her three kids! Video games, bikes, yada yada. She did the same thing for Valentine's Day. Valentine's Day! Her kids are super entitled, miserable to be around, and I see why. Wonder what they're getting for the Fourth of July?

I'm usually a small bit of chocolate (we don't do a lot of sugar) a book and some new pajamas.  Last year they got big stuffed animal/pillows instead of PJs.   I hid their baskets and do a clue treasure hunt for them to find their stuff.

Just another reason so many are entitled brats. Once a month there is a holiday they expect gifts

Easter has always been my favorite holiday.  That has nothing to do with gifts. It has to do with the memories that my parents created for us during Easter each year.

Sure, there were baskets, chocolate, etc...  But is was about the time together ... and ...... the insane Easter Egg hunts that my dad engineered for us.   The hunts included hundreds of eggs (boiled and plastic eggs loaded with treats and money), required that he keep a map of where he hid all of the eggs in and around the house, and required hand tools to get the eggs hidden inside of air vents, light fixtures, inside the case of entertainment equipment (VCRs, cable boxes, etc...). We had to climb trees, roofs, get into rain gutters, take the covers off of the water shutoff valve box for the house, etc, etc, etc.........

Mom would do an amazing Easter dinner.

Easter is still my favorite holiday.  My bride and I tortured our son as my parents tortured my brother and I.

Create your own traditions around Easter.  Make it special.  Gifts are not necessary.  Fond memories are.

Enjoy.