Mlsoft, Have you experienced any of this war personally, or are you relying on media reports?
Christmas to department stores is all about separating fools from their money, and nothing more. The department stores have taken "deck the halls" to excess, and not everyone celebrates Christmas. Especially around here, "Happy Holidays" is appropriate.
Personally, I prefer that government not be in the business of religion. I don't need government to celebrate Christmas or Sukkot or any of them. We can do with Christmas whatever we want. Who needs government property? Private property, homes, business, and private schools really should be sufficient.
I haven't seen any of the parade or pageantry issues, but we never did much with Christmas parades or pageants around here. Little kids in public school present another issue. For little ones, it would be hard not to include some holiday festivities in the public school classroom at this time of year. Our public school does both Christmas and Chanukkah projects/festivities without a problem. The songs chosen for little kids are not religious. Our demographic runs about 50/50. If they stop doing holidays at school, the kids will survive, and probably with less distraction. If parents really must have religion in the classroom, a religious school is more appropriate.
Again, I don't need some department store clerk wishing me Merry Christmas as they're spraying cologne and hitting sales projections nor do I think religion belongs in government. I have no problem with keeping Christmas or any other holiday off government property. When government starts telling me what I can do in my own yard, I have a problem.