I beg to differ.
If you are raising the kid with religious instruction I see no problem with the Santa Claus fable. Why you might ask? Because the fable contains the essence of a much larger truth.
Children are unable to understand eternity sin, or mortality or all the subtle nuances that adult can. What they can understand is neat stuff, toys and a deep love from all around them that they will retain in their heart for the rest of their lives.
Now around they time they are 9 or 10 they realize the stuff comes form adults, but the deep joy of Christmas continues for the rest of their life. That helps lead them to G-D and his son.
At some point they realize if there is not G-d then life is pretty grim, a nihilist if they have enough abstract reasoning power. So many turn to look for G-d. If they come from a christen family they will eventually end up with Jesus, and what is a better reminder of him and the promise of a creator that cares about us, and has provided for us, but the joy of Christ’s birth celebration. The best possible gift and the fable of SC in youth makes the reality of JC birth observation inherently a joyful event, not some solemn event noted in passing in a cold churh late at night.
That is the larger truth that is contained in X-mass stuff that is not religious. Remove all Yuel log, the songs, the treats the pagan tree and a most importantly the presents to kids and it is just another high holy day. Big...deal....
I was raised on Santa and as a older man those memories are precious, as is X-mass day full of joy to this day. It is a season of joy for me, when I am able to lift my head out of the details of daily life to see it. That jy has moved form a fable tot he real reason for the joy, but the seed was planted as a 4 year old, the first X-mass I recall.
I don't agree with your proposition because I've worked in child evangelism. My so-called "Christian" family could not explain the gospel to me....and I asked at a much younger age. So I went through the larger part of my life not knowing Christ. I conclude that it serves no purpose to allow idolatry to supplant gospel truth....at any age. I have found that to be true not only in my life, but in many, many others.
But I appreciate your point of view.