Anyone who threatens to sue over not having their religious holiday represented is clearly missing the point. Faith is an intensly spiritual experience, between an individual and whatever god he/she worships; religion is just a means to publicly acknowledge one's faith. What the rest of the world does, and what religious or paganistic icons it chooses to embrace shouldn't be of much consequence to the truly faithful.
Having said that, Christmas is not really a Christian holiday anymore; it's a consumer holiday. Stores don't post pictures of baby Jesus on the front page of their ads, or any other serious Christian icons, so I can't see what the big deal is with just letting the holiday be about coming together with people you care about and giving of your time and money to make someone else happy. What religion could find fault with that?