I think because Jesus is such a part of our every day life and Santa came in about 5 days of the year, it is not a big deal. I think you can do both. To me - it's no different than going to Disney World - your kids love to see the Characters there. I don't think going to Disney World is going to make them question Christianity. That's just my opinion.
I think this is something that every family can decide how they want to handle. I also think it's something that you decide, and then you don't worry what everyone else is doing. My choice is not the RIGHT choice or the wrong choice and I'm not promoting either way. Jesus is definitely the reason for the season!
Our neighbors and friends hosted a Christmas party for the kids, and Santa was there! He totally has it....I think it honestly could be the real one!