Not sure if this has been covered but what do you say to family/friends/etc that tell you you're spoiling it for the kids & that you're mean? And how do you explain it so they will follow with it.

We have decided we don't want to do Santa but they are already drilling into DD's head about Santa now (she's 2). As far as our Christmas at home is concern the kids will get presents from us & none from Santa. I wont mention Santa unless Im asked & will ask them what they think & explain it like someone else has suggested, like religion
I haven't told my friends and family yet because I don't think they will understand. Though we will have to bring it up at some point I guess. My DD is 2 years old as well and everyone (even strangers) are asking her about Santa.

I found this interesting blog post about someone who is not using Santa (and the comments are interesting too).