We had a pretty heated discussion on this matter last year which seemed to boil down to a portion of parents that wanted credit for getting their kids the presents, versus the made-up magical explanation.
I'll just say that some of my most memorable childhood memories involved Santa, and the excitement of the weeks leading up to Christmas eve and day with my brother and I, cousins, family, is simply unmatched. I'm not scarred. I don't hate my parents. What kind of messed up kid would for being lied to about Santa? They were wonderful beautiful times, and the anticipation was was so much fun. The whole family together, the music playing, the smells of food, the Christmas specials 24/7, me and my cousins running around shaking with excitement from the impending visit from Santa...
I don't understand all of the reasons against perpetuating the Santa experience. You want to show your kids it's you buying them shit because you love them? What? You should be showing them you love them year-round, why is the burden suddenly on Christmas? And the lie itself, are you expecting emotional scarring and permanent distrust from your child? Really? The day I found out, I was disappointed for an instant, but I was mature enough at that point to realize that it meant much more. My parents were behind it all, going through all that effort to make the holidays that much more special. It was such a powerful, beautiful realization that truly moved me, and that I'll be thankful for the rest of my life. It's also a rite of passage into adulthood in many ways. I learned to think for myself, and that the world isnt what it seems. It's a very sobering experience for a growing child that will really give you perspective. My kids will definitely believe in Santa.