Excellent thread...I'm interested in people's thoughts on the subject...I'm sure many believe its a harmless little lie but I wonder how harmless it really is?
I think it's causing permanent affects from a very early age that people are unaware of.
For one, distrust of adults and of others. You could argue this is good, however. Too much trust is obviously dangerous, narrows the mind, etc.... Perhaps it's good that we realize people can be very full of shit early on so that we open our minds to possiblilities
other than their claims? Hmmm.......
Maybe without Santa, without the lie that becomes so apparently a
lie, kids wouldn't realize at such an early age that adults can tell you untrue things... maybe this promotes critical thinking, open-mindedness, etc....
On the flip side, it may close the mind off from possibilities in general.

For instance, kids may generalize, losing trust on such a mass scale they don't trust
any possibilities and therefore don't consider them.... I think this is more likely the affect that the lie has on children (people).