Hmmm. I goess it's not a big deal for us. My oldest was too analytical to beleive in Santa and characters/etc past the age of about 5? 6? or so, but he's been a 30 year old since he was born LOL
My DD hates characters - they've always scared her, so when we were in Chucky Cheese and those kinds of places, we would always tell her that it wasn't a real 6-foot creepy mouse, it was just a person dressed up. then my teenagesister (at the time) started working at Chuck E Cheese and actually WAS the mouse, LOL, so DD was totally fine.
Because of my sister, DS2 always knew that that kind of stuff was just people dressed up. No worries there!
My kids have never asked to stand in a line for characters, so we never have. If they did, depending on the line, I might say something along the lines if "Are you sure you really *want* to? It's an awfully long line to wait in." The "it's just a person in a costume" part would probably be left unsaid, but really more because it wouldn't be necessary *to* say it....my kids already get the point.
Then again, I don't think that my typically Type A kids are always a whole lot of fun all the time, so maybe having a kid who WANTS to believe in fairy tales would be really fun!
