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)
Altered book - I bought one similar to this at a craft fair - a vintage edition of Pollyanna. I sat and read it (very carefully) and still enjoyed the story, which I appreciated even more because it was so beautifully decorated.