McSweeney's has created a children's book imprint called McMullens. Except for an egregious non-adherence to standard usage rules for apostrophes, McSweeney's McMullens books look well-done, thoughtful, and like they would make great gifts.
McSweeney's certainly thinks so, because they are offering multi-title gift bundles and McMullens subscriptions, presumably on the assumption that if you're a McSweeney's-type person, you'll appreciate the McMullens-type book for your kid. [Note: they can make these great prices work because some of these books are blank boardbooks for you to draw in, just so you know.]
If you're buying a one-off J. Otto Seibold's Lost Sloth looks nice. It's about a sloth on a road trip to claim a prize, sort of like Alexander Payne's Nebraska, with a sloth.
Among the great McSweeney's kids books that seem to have not made the McMullens cut: Lisa Brown's on-point Baby Earn Your Keep boardbooks, and Brown and Lemony Snicket's immortal holiday classic, The Latke Who Couldn't Stop Screaming. Oh man, we love that book. Which you can still buy from Amazon.
McMullens Subscription, eight titles for $80 [mcsweeneys.net]
Buy The Latke Who Couldn't Stop Screaming for practically nothing [amazon]
Previously: Baby, Earn Your Keep boardbooks from McSweeney's