Together with the Santa Claus story, we were raised afterall and it was never used by us against our parents. In fact, it really enhanced our satisfaction of the Holiday holidays. Even though our parents informed us if our conduct was excellent and that Santa was observing people the full time we'd get what we asked for, but when it had been poor - there would have been a lump of coal.
Moreover, the Santa Claus tale is pervasive -- on tv - buying in outlets and malls -- you-can't really move away from it. And if we shared with her the reality when she was fresh she might ruin the fun for other families. Consequently we chose to retain the nice components about Santa and make the rest up even as we went along.
Also it was really exciting. Kids get so enthusiastic about Santa Claus - they obtain photographs obtained with him, they produce letters to him, they leave him biscuits and dairy on Christmas Eve. We got to have each of that again through keeping the myth and wonder of the Santa Claus tale alive for the girl.