A unique handcrafted item becomes clutter when it isn't something the recipient will use. Compared with store-bought gifts it comes with the added drawback of being unique, and thus very awkward to dispose of to someone who would use it.
Handcrafted and unique is fine, but suitability is much more important.
No, this becomes culch that you really don't want and you become burdened with because of sentimentality. It feels bad to bin the dollar store crap that you get as a gift, but it feels especially awful to throw out the hand-made junk that your aunt crocheted for days.