There aren't really any little people in our family right now. This is OK with me as DD has plenty of time before starting one of her own! However, I find knitted things for little people absolutely charming. They're almost as good as socks...small, portable, a good place to try stitch patterns and, in addition, darned cute.
I do, however, have neighbors with two little ones...a 2 yr. old girl and a 6 mo. old boy. They don't mind at all being the recipients of random acts of cuteness!
I fell (hard) for Toddlers to Tots (and Babies to Toddlers), by Melissa. These patterns are among the cutest on the planet. I decided to knit up the Baseball Jacket for the little guy. This is approximately 12 mos. size. I swatched and adapted the stitch counts accordingly. The yarn is a superwash aran-weight, called Real McCoy, and is mighty stretchy stuff. I like this yarn so much, that I may get some more to make the poncho for his big sister.