The fuss over Merry Christmas reminds me of the phrase a friend used back in the 60's. "It's time to put the X back into Xmas."
There is an X-factor that is largely ignored as we solemnly insist on saying Merry Christmas rather than Happy Holidays, as if somehow we are betraying Christ by not saying the proper words. The incarnation is a mystery: How can He be wholly God and wholly man? How can a virgin conceive? How is the New Birth possible?
Certainly we can find linear theological answers, but there is still mystery. The Enlightenment doesn't cover all the issues, and in fact it hinders us from considering the awesome aspects of Christ's birth.
The ancient Orthodox use of Xmas probably reflects the ancient Jewish hesitancy to pronounce the Divine Name. They were so afraid they might take it in vain, so they didn't say it at all. To bandy about the Name, or to insist that the secular stores do so, seems to me like we are encouraging them to use it for merely commercial purposes. I think the issue isn't political correctness; rather, it is a carefulness to not take the name in vain.
Having said those things, I personally rejoice in the Incarnation. The Word became flesh. The baby was born, and He was the Son of God. The shepherds worshipped, the angels sang, and the Wise Men came. Merry Christmas!