This was one of the first things to strike me when I saw this. What kind of message is it sending to show a violent Jesus killing Santa? Kids, don't believe in a benevolent fat man who gives out gifts, instead embrace a gun-toting, murderous messiah? The mind boggles...
I'm a little conflicted about that, because--well, Jesus isn't all love and light and lollipops, anyway. See: moneychangers in the Temple; "I come not to bring peace but the sword"; etc. Jesus handing out divine retribution to something seen as an affront to Him I am not certain is
really so horribly out of character. (I'm sort of glossing over the part where an individual has decided he has the right to speak for what's offensive to Jesus here, though, which offends me on a totally different level.) I'm not sure a Christmas display like this one is really the best way to introduce that concept to young children, though, regardless.
