I imagine Hallmark stores took a hit with the spread of sites like Facebook, which not only reminds you of a friend's birthday, but almost literally puts the comment field in front of you to type your wish right then. Instant gratification. :-) The only time I buy cards anymore is for people who are not on Facebook or even on email (I like to send personal notes to birthday celebrants).
The ornaments, IMHO, have descended into that special place occupied by so many other manufacturers (comic books, scale-model toy cars,...): lots of licensing/product/event tie-ins and a steady stream of "this year's ornament", almost none of which will be worth anything ever because they're creating "limited editions" in the hundreds of thousands and everybody thinks they'll be worth a fortune someday.
I actually have some (too many) that I've received from my mom over the years; enough that I choose subsets of them for each year's tree. Our tree has been shrinking over the years (following my declining interest in putting hours into decorating it and taking it all down). If I were smart, I'd sell some of the lesser-loved ones on craigslist or such now (before Christmas).