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I like having an idea of what the recipient wants, but for close friends/family/spouse, I'll go with a surprise gift as well. It's really not that hard, listen to what they talk about and what they enjoy doing and usually you can come up with a gift the person will really like and be surprised by.
As for price, I spend what I am comfortable spending. If I can't afford it, I won't get it for the person. I expect someone giving me a gift to do the same. Which means if I am comfortable spending $300 on a gift, and someone else is only comfortable spending $50 on a gift for me, that's fine. Even if that person could afford to spend a lot more.
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