I'm very happy that Bitcoin I gifted in the past was gifted using by handing out private key. People lost their gifts and I was able to recover them for them.
I printed out a bunch of paper wallets over the years to give as gifts. I also kept the private keys to help restore if needed, and just checking now, only one of them has moved (in 2015). No one has ever asked me for help, so I don't know if I volunteer to "help" them restoring their bitcoin. A few of those are for 1 BTC (although most are 0.1), which is now a decent chunk of money. I like to think they kept the paper wallet in a safety deposit box or something, but probably the reality is it's both lost and forgotten.
But my actual main motivation for the "utxo-giftcards" was actually as a (very trade-offy) way of making payments. Very often when people are sending money to an exchange or a casino, they really just want to "send everything" and a big service would be able to very efficiently redeem such "utxo-giftcards" (e.g. using them to process someone's low-priority withdrawal)