Factual error: This mistake is from series 6 onwards, with Ross' new apartment: There is an impossibility with Ross' kitchen, but not all of the time. It depends on the layout of the hallway outside his apartment. If the hallway continues along for a bit before going left or right, then the kitchen should stick out. However, when the hallway is a dead end, the kitchen fits ok.
Continuity mistake: The white dog that Joey gives Chandler sometimes has red lips and sometimes does not.
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.