How many parents actually threaten their kids with "I wonder if santa's elves are watching" or rather use it as a light hearted phrase as intended at this time of year.
He knows when you are sleeping, he knows when you're awake, he knows if you've been bad or good...
That is a pretty fundamental aspect of the tradition. The naughty/nice manipulation is certainly a part of the video posted.
And, to be clear, I'm sure most people do intend to be lighthearted. It doesn't mean of course that children will feel the same way about it.
