The man behind the myth of Santa Claus was Saint Nicholas, a.k.a. “Sinterklaas”, the Bishop of Myra in what is now Turkey. His spirit of compassion and giving, became legendary and served as the inspiration for the myth of Santa Claus.
In Hebrews 12 we learn that the saints of the past are watching us today. They, like Jesus, are to inspire us to avoid distractions from serving God. One such saint, would certainly be Saint Nicholas.
If the legend of Santa Claus distracts or entangles in such a way that we lose sight of the significance of the Incarnation of Christ, dump the guy. But if Santa inspires us to selflessly and anonymously give to those less able to help themselves, I say he might be worth keeping around. We do not serve in the name of Santa, but in the name of Him who came to bring us peace on earth. Glory to God in the highest and have a merry Christmas
Deeper study: Ligonier Minstries on Santa Claus and Christians