God never told us to observe Christ's birth.

The Catholic church brought in pagan ways to entice them to join that system. The reason the holidays have gone almost entirely back to paganism is that they began as paganism.

 
Santa is a false god, an idol, people pray to, expect miracles from, and speak of continually, while the name of Christ never comes from their lips.

 
If someone had never heard of the holiday at all and just read the Bible, they wouldn't see anything in the scriptures that resembles what our culture does today concerning holidays.

 
Also, ask the question, "why do unsaved people love this holiday so much?" The reason is that it appeals to the emotional senses and pleasure.

 
There are no physical things we do for God as born-again believers, except one: the Lord's Supper, which He gave to us. Everything else He never commanded, we are to worship in "Spirit and Truth", no artifacts or items to look at longingly that almost always take priority over Christ.

Christ gave everything there was to give to mankind; there is nothing mankind can give back to God in the form of rituals or physical gifts that would have any significance. We worship God with our lives in Spirit and in Truth.

 
Romans 12:1-2 "1Therefore I urge you, brothers, on account of God’s mercy, to offer your bodies as living sacrifices, holy and pleasing to God, which is your spiritual service of worship.

2 Do not be conformed to this world, but be transformed by the renewing of your mind. Then you will be able to test and approve what is the good, pleasing, and perfect will of God."