Whatever your opinion on Santa Claus, I hope we can agree that the woman in the link handled the issue badly. The girl believed in Santa because her mother said he was real, then disbelieved because her mother said he wasn't. Of course she cried -- she was powerless from beginning to end.
Parenting Beyond Belief gives a much better Santa disillusionment tale:
My boy was eight years old when he started in with the classic interrogation: How does Santa get to all those houses in one night? How does he get in when we don’t have a chimney and all the windows are locked and the alarm system is on? Why does he use the same wrapping paper as Mom? All those cookies in one night – his LDL cholesterol must be through the roof!
This is the moment, at the threshold of the question, that the natural inquiry of a child can be primed or choked off. With questions of belief, you have three choices: feed the child a confirmation, feed the child a disconfirmation – or teach the child to fish.
The “Yes, Virginia” crowd will heap implausible nonsense on the poor child, dismissing her doubts with invocations of magic or mystery or the willful suspension of physical law. Only slightly less problematic is the second choice, the debunker who simply informs the child that, yes, Santa is a big fat fraud.
“Gee,” the child can say to either of them. “Thanks. I’ll let you know if I need any more authoritative pronouncements.”
I for one chose door number three.
Related on OB: Lying to Kids The Third Alternative
My wife and I are planning to have kids, so of course we've been going through the usual sorts of debates regarding upbringing. We wondered briefly, will we raise our children as atheists? It's kindof a cruel experiment, as folks tend to use their own experiences to guide raising children, and both of us were raised Catholic. Nonetheless, it was fairly well settled after about 5 minutes of dialogue that atheist was the way to go.
Then we had the related discussion of whether to teach our children about Santa Claus. After hours of debate, we decided we'd both have to think on the question some more. It's still been an open question for years now.
Should we teach kids that Santa Claus exists? This isn't a new question, by any means. But it's now motivated by this thread about rationalist origin stories. Note that many of the posters mark the 'rationalist awakening' as the time they realized God doesn't exist. The shock that everybody, including their parents, were wrong and/or lying to them was enough to motivate them to pursue rationality and truth.
If those same children were never taught about God, Santa Claus, and other falsehoods, would they have become rationalists, or would they have contented themselves with playing better video games? If the child never realized there's no Santa Claus, would we have a reason to say, "You're growing up and I'm proud of you"?