The criticisms for the policy to cancel Christmas services has little to nothing to do with legalism. On the contrary, there do exist churches which really don't care about increasing Bible doctrine or faith in their believers, rather they have become preoccupied with social management and appeals to do-gooderism. Where such groups exist, they might manifest that actual lack of Scriptural faith by deciding their personal and worldly distractions within their private families exclusive of any fellowship in the spirit with the Holy SPirit take priority to their social church activities.
This report is indicative of such a group. Not condemning of the group, merely indicative of wrong priorities in life.
They are having a service Saturday night. In New Testament times, the day went from sunset to sunset. So they are still meeting "on the first day of the week" as required.
If this were any other day but Christmas, no one would care. But many have turned a pagan holiday and man-made tradition into a biblical command.