I thought I'd get back to you all and let you know where we are at! Well, I almost had a conversation with her the other night, and didn't. I actually think I'm going to let her go on. She knows that there are other who don't believe. She knows that it really doesn't make sense. She knows she has to ask for realistic gifts. (unlike the year she asked to be made into a fairy.) As far as I'm concerned, she has enough information to decide for herself. She clearly has let us know her decision. I'm not sure what would make her sadder, us having lied about Santa or us not letting her play the Santa game another year.

So, another year of sitting on Santa's lap...for us. I also think that because she is the oldest in the family, brightest in the class, and responsible for many things, she deserves to sit on the lap of a fat, old man and tell him what she really wants for Christmas...She gets to be little again for 5 minutes. It's still magical. Besides, she KNOWS it's not the real Santa. Just people he hires. lol
Thanks for all the comments. It made me really think about what I felt was right for HER.