We did something similar - I bought her a ring and she bought me a nice watch (probably because she hated my geeky touchscreen digital watch with drop down menus and the like)

Now I must say I hate the whole inflated pricing scam, but I do like the way my wife's engagement, wedding and eternity rings look, and she enjoys wearig them - so they were well worth the money. Neither of us were keen on large diamonds, so we went more for the shape and colour of the rings (white and gold) than the sparklies.

More amusingly she has started discussing the possibility of a 3rd child. I have started discussing the possibility of trading in my Impreza Sport for a turbo model, and implied there may be a connection