This feels like a big one...
But really, it's simple. We must stop lying to our children for the sake of tradition. Period.
The magic and wonder of the season can remain present while telling the truth. That being: Santa is a story, a fairytale. It is you, the adult (in tandem with your child), who creates the magic. There is no need to lie. Enthusiasm and honesty are far greater sources of joy. Plus, give yourself some credit, it's not easy making all that magic. (and remember, less is more for the young child)
And as for the Elf. Just don't. It's creepy, and dishonest.
Let's celebrate honesty this year. For the sake of the child. And the world.