We were at Cape May for Christmas, 2005. Of course, the whole resort is beautifully decorated. We had a little bit of "magic" that happened, but it was a sort of private thing because a CM noticed my daughter's t-shirt and did something special because of that. Other than the decorations, I didn't notice anything particularly unusual.
Do be aware that DDE does not apply on 12/24 or 12/25. This is a small thing...but I had gotten so used to using the card on that trip that I automatically handed it to our first server on 12/24. She sweetly reminded me that it couldn't be accepted on that day.
I was amazed that Cape May was not crowded!