Conservatives who support religion (specifically Christianity) in public schools, is this a fair compromise?

In my school district, which my niece is enrolled at, Elementary schools hold holiday/ winter parties where they make snow flakes, snow men, they can make stocking, play with a dreidel, learn about the different holidays of the season, there are Hanukkah, Christmas, Kwanzaa and winter sugar cookies, they also have chip pretzels and other snacks. It recognizes all of the holidays of the season and the time of year but respects all students. So, what is the problem? Why does it matter if there is no organized Christian prayer, teaching or any other prayer for that matter? The schools still allow Christmas recognition.