Facebook announced last night that its gift shop will close on August 1. After that date, you won't be able to give any Facebook gifts (free or purchased), but gifts that you've already received will still be available on your wall and on your gifts page. However, third party gift-giving applications like someecards will not be affected.
Facebook hasn't given its specific reasoning behind the decision, but says getting rid of gifts will allow them to "focus more on improving and enhancing products and features that people use every day." Most of you said you don't give virtual gifts, especially the type that you have to pay for with actual cash; perhaps lack of popularity is a big reason Facebook decided to pull the plug on this feature.