From an idealistic point, I see what you and IP are trying to say, however, it is that child who will suffer the social stigma of absolute honesty, not that parent. Ok, so you tell your kid there is no tooth fairy, no santa, no anything, great for you, is it so positive for the child? From a sociology standpoint, I don't think so at all. Whatever is the mass teaching of the time is going to have a direct impact on that child. Either they will participate with it, or be removed from it. I know how it feels to be on one end of that spectrum, and it isn't fun.
I'm not against kids participating in Christmas, so long as they understand it's a fairy tale. For that matter, as I'm sure you know, the pressures of social stigma will keep most kids from arguing about Santa, even if they know the truth--unless they're like me.