On Santa Claus and movies

We were discussing a Goodtime video on Frosty the Snowman. Goodtime makes knock off version of classic stories. My goddaughter, Krissy, when she was little and I was watching her, told me to get her Snow White with long hair video. I knew Snow White didn't have long hair so I was at loss to find it . I brought her the Disney one and she was getting frustrated with me. She came storming in the room and picked it right up. "Aunt Christie, I said Snow White with LONG HAIR!!" So I am well aware now of the difference in the versions.
Anyway, back to Frosty. Apparently, this version has some scary, magical elements. The boys brought it down to us to review. Kara called it the evil video. She asked if she could watch the "evil video" because she like the princess in it. The boys countered that we hadn't seen it yet. Kara concluded that we should "sell it to the devil" if it were evil, because he would like evil movies." What do you say to that! I guess her mind was still in the Christmas mode because of Frosty so she then said, "we shouldn't call Santa a fatty." Ethan responded, "Santa's dead", in a matter-of-fact kinda way. Albert reminded him that Saint Nickolas was real and that he did good things and gave good gifts to children. Ethan responded again, "but he's dead."