What I'm really not sure about is why some people seem to think that being honest about FC somehow kills the magic?
I grew up in Switzerland, where the tradition is a little different from here (Santa comes on 6th December). Every year like clockwork, Santa would come to our house. I knew in my mind that there was no Santa - and yet I used to be so excited and, yes, a little afraid.
My parents made the wise choice of recruiting a Santa whom we didn't actually get to meet in real life. We never recognized the man, a friend of my mother's, and to this day he is the "real" Santa to me. All those blokes in Santa suits are imposters. (And FWIW, you can recognize real Santa by the fact that he wears a 70s Credit Suisse beanie hat, not the red crap!")
Unfortunately my Santa story has a very sad ending: From when I was about eight, my parents replaced real Santa with imposter Santas; he never came anymore. It was only years later that I found out the truth: Santa had committed suicide by shooting himself in the head with an army assault rifle! His real name was Walt and he left a wife and two small children. To this very day I still think about him and above all his poor family. People tend to laugh when I say Santa offed himself - I don't actually find this funny at all!
In spite of the pretty horrific ending of my Santa story, what I actually mean to say was this: I never "believed" in Santa. And yet he was real to me. My excitement, the feeling of being a little afraid and yet impatient, that was real. There was no lack of Santa magic in my life when I was small. The magic broke because Santa died, not because he'd never been alive in the first place.