Interesting thread. I am really, really, REALLY going to be the oddball here!!
We have never done the "Santa Claus" thing in our house. We always celebrated the holidays for the religous focus.....the birth of Jesus. (My husband's family was the same growing up, while my family "believed" in Santa).
We never found the holidays to be any less magical as a result. We still did the Christmas pics on Santa's knee, watched all the holiday cartoons, and still wrapped presents and placed them under the tree "from Santa" (but there were also some under there from the cat, and we all know she didn't shop nor wrap them
). And the boy knew from the outset that other people chose to have their kids believe in the big guy in the red suit, and that was totally okay (and it was not okay to be the one to ruin their traditions or inform other kids of "the truth").
For us, the magic of the holidays lies not in who brings the gifts and puts them under the tree, but in the spirit of the whole season. It's the "peace on earth, good will to all men" way of marking the holidays. Donating food to the Christmas Sharing and Salvation Army organizations to help them provide a holiday meal to those in need. Contributing to the local toy drive. Visiting those who need company during the long winter months. Baking our favourite holiday treats, and delivering some to special neighbours as a way of thanking them for their friendship all year. We have always told our son that the "Spirit" of Santa lies within all of us, and the least important manifestation of that are a bucketload of presents under the tree with a tag signed by a ficticious fellow (not to say he still doesn't get that onslaught of gifts.....we just haven't seen the need to have them be "from Santa" in order to be special and exciting.....in fact, I think he has learned to be even more grateful knowing Mom and Dad worked hard to provide such wonderful presents at Christmas, and it has allowed him to appreciate our generosity and sacrifices so much more). I hope, when the time comes and he has a family of his own, he teaches his children the same thing
.
OP, Christmas can still be full of wonder and excitement, even without the belief of Santa still in tact. It will just be time for new traditions and new ways of finding "magic" in such an amazing season of the year.