The One With All The Rugby - S4-E15
Stupidity: Emily tries to help Ross inflict pain on the other rugby players and tells him about one player who doesn't wear a cup. No one who knows rugby would ever wear a cup, it is more hazardous than helpful to wear a cup in rugby as it involves a lot a grinding, and a simple slip or movement could cause serious damages to the male genitals. Especially if these guys are British and well versed in rugby which they are.
Answer: Usually by the seventh night of Hanukkah you don't know what to get the other person, and you will probably resort to getting the other person something insignificant. Chandler is basically saying that the pen is a stupid gift.