Nice thread (thanks for starting it Brit), and it's interesting to hear everyone's thoughts. I honestly don't think anybody has bad intentions when wishing others a Merry Christmas, Happy Holidays, or Happy anything else, and it's a shame we even have to worry about all the political correctness.
However, I often take the route of "Happy Holidays" just to cover all bases.
But, being in Hawaii, my favorite is MELE KALIKIMAKA