Who knew what you buy for your kids could cause such division in AIBU :-)
FWIW we do a pared down Christmas too, and it's not a financial decision, it's come as a result of many years of just being overwhelmed with stuff and realising that it was totally unnecessary. Our 3 dc (14, 12 and 9) don't feel hard done by, or upset by it, and the decision to pare down was discussed and agreed between us all.
We buy one main present, that they really want (it's been bikes, or scooters, paddleboards, a piece of expensive clothing, or a games console in the past) do a stocking (which, shock horror, contains things they want and things they need - bath/body stuff, perfume/aftershave. chocolates, underwear/socks, drinks bottles etc) a selection box and maybe one/two small presents that they want. They also get presents from grandparents, aunts, uncles, Godparents etc, but again, these are things they've specifically asked for.
We don't buy food like the shops are going to be shut for 456 days either over Christmas, but we do admittedly buy some nice wine/chocolates and treat food to enjoy together, just not the grim amounts that I see some people buying, then subsequently throwing out come remorse day/NY :-)
I don't care what kind of fun hoover some people on this thread might see me as, Christmas isn't about the biggest pile of presents (ask your children what presents they remember getting last year, I found ours remembered the big one and maybe 2/3 of the smaller ones previously, which begs the question 'why buy heaps of stuff?!') or getting yourself into debt for one day.