A little late to reply, but thought I'd add my two cents.
Something that can be appreciated sooner: booties/mocs, mittens, and/or a trapper cap. These can all be lined with sheepskin or sherpa if they're in a colder climate or flannel if they're somewhere a little warmer.
Something that can be appreciated later: wet molded trays or bowls. These can also be tooled and painted if desired. Buckleguy sells premade molds, and Corter Leather has good guides on YouTube.
Something more for the parents: a tooled photo album cover.