On the idea of "food gifts" - a friend once gave me a bottle of orange-rosemary vinegar. And I've had rosemary-crushed hot pepper olive oil. I've seen people use the stems of the rosemary for skewers to grill with.

As for crafts - you could use the branches similar to evergreen branches to make a wreath or a culinary swag. A branch of rosemary would add a nice scent to a bouquet of flowers.

Dry rosemary leaves can be incorporated into handmade paper. I did it.
They can be added to small stuffed toys - any stuffing, especially nice in toys filled with some kind of seed, like bird seed. (I once had a lot of bluebonnet seed (=lupine) and made small rag critters stuffed with it. They came out like miniature bean bags - very interesting.) Rosemary added to pillow stuffing is said to improve memory.

Smudge sticks? I made some lavender one for a friend (and myself) who is very much into spirituality as they are used to bless and protect your home, according to native cultures.

I just threw away a photocopy from a library book with a recipe for herb butter which could be frozen until gift-giving time. Too late for this batch of rosemary, perhaps, but maybe useful for another time. I wish I had the right climate for rosemary!