Continuity mistake: The view from Monica's apartment changes after the first few episodes.
Continuity mistake: Ross always had an end apartment. At some point in Season 8, his apartment became a middle apartment. In earlier season, when Joey had mistaken Ross' for the hot girl's apartment, it showed the apt as an end apt. In TOW Joey tells Rachel, when Joey asked Rachel to have dinner at Ross' apt, it showed another hallway where Joey came from which is supposed to be the wall/ Ross' kitchen.
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.