Definite no to Gerber. Whole life insurance is not a great investment. Actually it's not even an okay investment. Some older folks cling to whole life, but with the accessibility of the stock market / mutual funds / CDs nowadays, there is just no reason not to invest instead whenever you can do so safely.
We are putting a certain amount in with each paycheck, and rolling it over into CDs as it hits minimums. Then we'll combine them as they grow, and when we have enough to play with it a little, we'll make decisions then about the best investment at the moment.
529... At your own risk, I'd say. Great for some and not great for others. I know you can get the money out if baby ends up unable or unwilling to attend college, but look into the tax consequences of doing so before you go that route. What if baby decides to go to an unaccredited trade school, or has a terrible health problem and can't attend college due to mental or physical challenges? You might wish that money were more accessible than it's likely to be with a 529.
Grandparents and other family members can give tax-free gifts without 529s as well. The laws changed this year, but it used to be up to 12K a year, for any reason. (If you expect to receive more than that and want to reduce your tax burden, hire a tax lawyer who knows more than I do!)