My poor lil godson was still born. So I didn't really get a chance to experience the joys of god motherhood. However, BabyBlue91, I would have been heated had I been in your situation. I cannot stand UNGRATEFUL people. I used to be friends with this girl and her daughter had a birthday party, do you know she had a negative comment about every gift but mine. Only because I got exactly what the girl wanted, but what if I couldn't get it and it was a different brand as with you??? Some of these parents make it seem like you are the godparent for them and not the child.
What I would have done was what you did and buy a gift certificate and let her shop for her own child or not give them anything at all. It is really unfortunate that the child gets caught up in this drama. I agree with AKA2D'91, make her aware that she has offended you, because her actions were definitely trifling.