I would rather not use Merry Christmas (myself), so I'll generally use Happy Holidays, if I use anything. I don't mind the Xmas thing, bc I don't think it's intended as an insult, nor does it have an origin solely based in convenience (like Nancy explained). Though I do love convenience

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The 'holiday' season (as seen here in the U.S....from Tgiving thru New Years) is not a happy (or celebratory, for various reasons) time for everyone. It can be a 'season' of increased sadness, stress, memories, ...what have you. That's not to say everyone should go about thinking "oooo, I wonder if I should not say anything just IN CASE so-and-so doesn't like the holidays". I'm just mentioning it, that's all....bc happy and merry is sometimes the last thing someone might be feeling.
Still, I don't mind hearing the "Merry Christmas" thing, as long as people are just as accepting regarding other religions' holidays and sayings. I'm not sure at times if we fully realize just how diverse the world's religions are...and that doesn't always feel right to me.
*Shrugs*...at the end of the day, I can see why some people truly want to celebrate the holidays to the fullest. I can also understand why it makes people of other religions feel a bit sensitive (bc I feel sensitive
for them, even from the outside).