I'm currently going through a similar situation. DD is 2 yrs 6 months now & I've been happy for her to use her dummy for sleep time or comfort when she is sick. I have told her that Santa will be taking them this Christmas as she is a big girl now in her big girl bed etc etc She seems ok so far but I dont think she's actually understanding that it means NO MORE DUMMIES lol

I love the idea of hanging them on the tree, yes I did say THEM, she has about 6. I honestly haven't had a problem with her using them for so long, I just think that as she's approaching 3 next year its a good time to get rid of them.

I wish you heaps of luck!! I know these things can be hard, not only for the child but so so hard on the parents too!