From the American Heritage Dictionary:
Xmas
SYLLABICATION: X·mas
PRONUNCIATION: krsms, ksms
NOUN: Christmas.
ETYMOLOGY: From X, the Greek letter chi, first letter of Greek Khrstos, Christ. See Christ.
USAGE NOTE: Xmas has been used for hundreds of years in religious writing, where the X represents a Greek chi, the first letter of , Christ. In this use it is parallel to other forms like Xtian, Christian. But people unaware of the Greek origin of this X often mistakenly interpret Xmas as an informal shortening pronounced (ksms). Many therefore frown upon the term Xmas because it seems to them a commercial convenience that omits Christ from Christmas.
the whole chritsmas season has been converted into secular commercialized nonsense. the whole government -media-industrial complex has created a patriotic gift giving holiday where the govt. and media daily cheerleads us into spending to help the economy and keepthe unemployment rate down.
whats next ,a similar holiday 6 months later? how about converting july 4 into a gift giving holiday complete with -secular of course- with mythology related to gifts and tv specials to excite children to nag their parents to spend what little disgressionary income on nonsense. we can create an icon such as abald eagle that flies to good childrens home to give gifts so that kids will be shameless in their demands- why not" Earnie the Eagle". just think the profits for retailors -2 xmas a year.
Yes, you're correct about the Chi or X in Xmas, but in today's world we need to not fear using the actual word Christmas. If anything, we need to use it more, not less. I feel people who use xmas are just in a hurry and a little lazy to write out Christmas; they really don't intend to offend.