The heathen recognize the truth of the evergreen that God put into it --- something that is everliving all year long. Even the coming of the Son of God to man during the darkest days of the winter solstice at Christmas is one of those truths found in nature.
The Jews celebrated Channukah during Jesus' ministry and you never heard him complain about it. He even went to Jerusalem and walked amidst the Temple during the celebration in John 10.
While the Santa stuff is a bit much, the redeeming value of Christmas tradition far outweighs anything else about it.
Even if they did, God still condemns their practices and certainly doesn't want his followers to do the same.
2Ki 17:9 And the children of Israel did secretly those things that were not right against the LORD their God, and they built them high places in all their cities, from the tower of the watchmen to the fenced city.
2Ki 17:10 And they set them up images and groves in every high hill, and under every green tree:
2Ki 17:11 And there they burnt incense in all the high places, as did the heathen whom the LORD carried away before them; and wrought wicked things to provoke the LORD to anger:
2Ki 17:12 For they served idols, whereof the LORD had said unto them, Ye shall not do this thing.
How different in practice is the red highlighted scene above from a nativity scene under a Christmas tree? Or presents under Christmas trees?
Isa 57:5 Inflaming yourselves with idols under every green tree, slaying the children in the valleys under the clefts of the rocks?
Eze 6:13 Then shall ye know that I am the LORD, when their slain men shall be among their idols round about their altars, upon every high hill, in all the tops of the mountains, and under every green tree, and under every thick oak, the place where they did offer sweet savor to all their idols.
Putting things, offerings, gifts, under trees, to honor "gods". It's the same today. Most people are just unaware that they're emulating those very same pagan practices that God condemns.
You're right, he didn't object to it. Hanukkah for Jews is kind of like Thanksgiving for Americans. There's nothing wrong with it because it's origins were in thankfulness to the true God. I personally don't celebrate it because I'm not Jewish.
Joh 10:22 And it was at Jerusalem the feast of the dedication, and it was winter.
Joh 10:23 And Jesus walked in the temple in Solomon's porch.
BTW, many commentators say that the reason he was on "Solomon's Porch" was that the weather was too inclement for his normal methods of preaching...which of course is another argument against sheep and shepherds being out in the fields.