I love to get gift cards to stores that I love. I received a Sephora gc for my birthday. Much happiness ensued. Followed by an "I told you so" conversation between my two friends (it was a toss up between Macy's and Sephora).
I give gift cards to stores I know people love to shop at. Or will give them a gift card to a store where I know they want a specific item.
Cash is ok and I can be good about allocating it to something fun - but I know I am probably in the minority (I received cash from grandparents from a young age and had to save it or use it on something fun)