IMO everyone is entitled to their own opinion/beliefs/traditions etc.
to some santa is just like reading a book to a child, they know its a story, but it's still magical. Jus tbecause a child doesn't believe its real it doesn't make the idea of it any less magical.
With me LO's we tell them the story of Santa, we don't say if he's real or not, we allow them to choose whether to believe in him. we did tweak the story slightly, taking out the naughty and nice list, adding bits in here and there, telling them about how he has different names to different people across the world and how his story is different as well. and also some don't know his story. that he gives one special present to each child who knows of him and allows him into their lives. we have also told them that he chooses the special present because he takes time to consider the special present like we do with family members as the magic is more about the thought of the gift rather then the actual gift itself.
when they started talking about what present they would get we knew that they chose to believe. Christmas Eve will be about father christmas, christmas day will be about family, time together, making memories, making others happy.
so that's our christmas this year and for many years to come, others will do it differently others may not like the way we do it but at the end of the day isn't it just a bout the special feeling and memories created for our children? believing or not thats what it is to me.
(i had a feeling they would believe as they believe in fairies and all sorts of other magical things, they have very wild imaginations, and i will admit to playing on this, but i have never once told them if it's true or not, its make believe, to some its made up, to others they believe, just becuase you can't see it doesn't mean its not real. they will grow up knowing that it was their choice, i jsut told them the story)