There once was a Santa who, instead of building new toys for kids each year, diversified his business and leveraged his contact list. The bottom line was to identify what children had and could exchange with another as a gift for the holiday.
Sure Santa still intervened when there was no true solution or if toys had to be fixed en route to their new owner; but otherwise, the Santa spirit morphed and people started to connect without the middleman to reuse the items that they had and the joy that filled their house from that item.
The true magic is how humans evolved to change their consumptive holiday habits and take care of each other better and the world we inhabit. The truth is that we are all fine at home with our families, potentially a treat or a good book and the dog or cat curled up. Santa being the magic we make for ourselves, our connections to those around us.