Factual error: In season 4 generally, Phoebe has the shortest pregnancy ever. She gets pregnant as the boys win the girls' apartment. In the next episode Ross meets Emily, after 6 weeks he gets engaged to Emily and they then choose to get married 4 weeks later. Phoebe would only be 10-12 weeks pregnant by the time they fly to London, not in her third trimester.
Revealing mistake: Before Phoebe agrees to carry Frank and Alice's' triplets, she already has a baby bump.
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.