I don't have any suggestions because I'm facing the same thing. It's one of the reasons I want to DA instead of fading. My immediate family only converted when I was very small. So all of my extended family is either other religions, or no religion at all. They always have a bang-up Christmas party, and good birthdays, with cake, tree, treats, gifts, decorations, the whole 9 yards. All the rest of the family attends, just not us. Same for Turkey day.
I have never participated. I really want to this year for the first time. But because we are fading (in respect to my husband who has a large JW family to try and keep) I can't go have Christmas or anything else with them. It would definitely get back to my family, and they would be immediately telling the elders, and getting things stirred up. So I'm not sure how to get around that one either.
My family (all the non-jw ones) would be THRILLED that I got out and spent holidays with them, so I feel especially sorry that we will not, though we no longer have any objections.
Odrade
And BTW, Min, ask your wife how she would have felt when she was a faithful Dubbie, if her relatives had QUIT doing the holidays to become JWs? She would have been overjoyed that they had "come to their senses", right? This is just how her "worldly" family will feel. They will be ecstatic that she finally woke up and wants to be a full part of the family again.