@jym626 , if the parents suggested a car seat, I’d go with that. Have them pick something out and you’ll pay for it. The baby won’t care one way or the other. 
Of course, you could assuage your grandparental feelings bay adding a charming outfit in a larger size. 
Or maybe an age-appropriate board/pop-up book that they don’t have. I don’t know what’s current now, but the Spot books were great when S was a baby.
A 'Y" bike. /www.amazon.com/YBIKE-YPI-Pewi-Y-Bike/dp/B004M0PSKG
Green Toys http://www.greentoys.com/
Outdoor climbing toy
Activity and Learning tables
Puzzles
Musical instruments for toddlers
Push and pull toys–even the classic "popper, which is on sale for less than $6 on Amazon right now.I’m not recommending these in particular, but a few ideas.
a little wagon they can hold onto and push–and use to move things around the house https://www.amazon.com/COSSY-Wooden-Learning-Walker-Toddler/dp/B079PSFBMC/ref=sr_1_7?ie=UTF8&qid=1531327732&sr=8-7&keywords=push+and+pull+toys+for+1+year+old&dpID=41Fy6gvqpPL&preST=SY300_QL70&dpSrc=srch
OR
OR the classic
Pull toys–there are a gazillion; here’s one https://www.amazon.com/Rich-Frog-Classic-Puppy-Pull/dp/B000OIQ89U/ref=sr_1_32?ie=UTF8&qid=1531328050&sr=8-32&keywords=push+and+pull+toys+for+1+year+old AND ANOTHER https://www.amazon.com/World-Carle-Hungry-Caterpillar-Wooden/dp/B003BQ9JTI/ref=sr_1_48_a_it?ie=UTF8&qid=1531328221&sr=8-48&keywords=push+and+pull+toys+for+1+year+old
Great ideas everyone. I think they would especially like a “green” toy. The link takes me to the generic site. Will look around. Thanks everyone.
You might also start giving a traditional gift like ‘Add a pearl’ necklace or a charm bracelet where you give her a charm every year. It won’t mean much to her now, but when she’s 16 it will.
Being in the Northeast, I’ve always relied on LLBean or the like for a nice toddler-sized down bunting suitable for a carseat or stroller.
The above post made me think of this, so fun!! (if they live where it snows)
https://www.llbean.com/llb/shop/23757?page=kids-pull-sled-and-cushion-set
I think we can agree that there are three types of baby gifts: the super practical (say, a diaper service) the big or bigger-item (crib, car seat, stroller, bassinet) and the meaningful, personal gift – a hand knit sweater, a personalized item, etc. I was very moved when my MIL knit blankets, hats and tiny cardigans, all made with love for her newest-to-be grandchild. Those gifts, and the items she made for my second child, have been treasured, saved and will be passed on to my kids when they become parents. They remain among my most favorite gifts, ever.
I wish they lived in snow country, @abasket and @NEPatsGirl , but they do not. And I wish they lived on a flat terrain, but they do not. S and DIL have a niece and nephew who live nearby and provide lots of hand-me-downs. They are awaiting word as to whether a bigger carseat is in the offing. The nephew may still be using that one.