I always find it interesting that adults get so up in arms about children being told what they (the adults) acknowledge as a truth.
Equating the truth about Santa with “taking away fairy tales and folklore” is a straw man. Really? Let me ask the Logic and Philosophy professor directly across from me. He said, no, it is a statement of the truth, pure and simple. It is not a distortion. You might not like the result, but it is not a distortion, and therefore, not a straw man. If somebody came up to your kids and told them, “Hansel and Gretel isn’t a true story,” would you be angry? Probably not, because you have not based your holiday on such a story. You have not spent time and money, probably, into convincing your children that Hansel and Gretel are real. Hansel and Gretel are not tied to a particular time of year or practice. Santa Claus is tied to both.
Parents start the Santa myth in their families for whatever reasons: They had fond memories of it, they think it’s fun for the kids, they don’t want their kids to feel left out of a secular tradition, whatever. I think their anger over their children being told the truth is simply that now they will have to deal with their children knowing that they (the parents) did in fact mislead them with a fiction and pretended it was real. And again you are wrong. There will come a time when the children figure out for themselves. At that time, there are a variety of ways to tell them. I am not afraid of it at all. I am afraid of unSanta people, and their children, not allowing my children and my family to do as we deisre, while they live it out their own way, often (
but not always) smug in the knowledge that they have “enlightened” my children.
We DO respect other families’ traditions. We have very close friends who celebrate Christmas with Santa as part of their traditions. I helped the mom shop to find a sleigh bell, because her son wanted a “bell off Santa’s sleigh”. I have instructed my own children to NOT enlighten other children, because it is up to their own parents to decide when to share the truth. See, you respect other people’s choices.

Very good! The priest did not respect the parents’ choices. Santa is not a sin. He could have done a talk on commercialism without Santa.
I don’t think the priest was out of line to discuss the commercialization of Christmas. It’s a timely message. Jesus is not present in the lines at the mall to see Santa. Most children’s first lesson about Christmas is “we get presents”.