Popular yarn manufacturer Berroco frequently releases new free patterns, so it's not surprising that they started with Christmas patterns back when we were still posting about Halloween stuff.
Their latest free holiday pattern is Minutia: a collection of twelve tiny, detailed sweaters knit from a sport-weight yarn. They're cute, and they only take a few hours each to knit. When you're finished, twist a hanger out of craft wire, hang the sweater on it (the only time it's acceptable to put knitwear on a hanger, as far as I'm concerned), and put it on a tree or a package.
These might be a better way to use up yarn scraps than a project to invest in, unless you're going to make a lot of them. Many of the designs are multi-colored, and it seems wasteful to me to buy a whole extra hank of yarn just so that one of these miniature sweaters can have a contrast stripe at the collars and cuffs.
Among Berroco's other holiday offerings, you might like Lattice, a colorful lattice-stitch stocking, the Silent Night cabled tree skirt that can also be made as a capelet (just eliminate one of the wedges), a collection of felted ornaments called Decorate that was released around this time last year, and John, a Fair Isle stocking.