I did balloons, I can twist a bit so I did a bear on a hoop for all the kids. Is cheap as chips 100 balloons cost about 10 dollars and you can find tutorials on YouTube. Kids love balloon models even the simple dog. It does take a bit more time than a party bag but no sugar or plastic and you don't have to store it either, it will pop or can be popped.

As a parent I do quite enjoy eating the lollies though, prob DH and I eat 75% of them :-).
My personal preference is for lollies over dollar shop plastic toys (Lego of course is another matter). Homemade playdough is nice, I don't like the plastic wastage in the tiny gift playdough tubs. One can never have enough crayons, or stickers/tattoos.