I was raised Jewish and my husband a mix of Christians. His parents never go to church anymore, he rarely did past 9 or 10. (I was bummed when I realized they wouldn't be the ones to introduce me to the elusive midnight mass when we started spending xmas with his family.)
We also have 3 year old twins and our families come together in DC for xmas. It's just a time everyone can make it and while my father has some typical Woody Allen style angst over it, it's pretty typical American style xmas (tree, presents, lots of food and for the adults booze).
So far, my kids accept that we do it and they also have a menorah and dreidel. I think we might tackle the religious meaning someday but don't feel any pressure to now (or even in the next couple years).