As a solitary pagan of primarily Germanic and Celtic influence, I tend to celebrate Yule privately, but Christmas with immediate and extended family since they are all Christians.
As to the Christmas argument, it is a Christian holiday placed right around the same time as pagan celebrations and retaining many of the same traditions. It's becoming a largely commercial holiday just like everything else, however.
Really I don't see what all the fuss is about with the whole "Happy Holidays" vs. Christmas thing. While I do get warm fuzzies from knowing that stores cared enough about non-Christians to put "Happy Holidays" up in their ads, I don't get offended by "Merry Christmas" ads.
Regarding the whole "War on Christmas" crap, I agree that I'm pretty sure most non-Christians don't really care if ads say "Merry Christmas." The offense I've seen comes from the people getting offended at the switch to "Happy Holidays," because the people getting offended believe that Christmas is the only holiday (or the only worthwhile holiday) this time of year.
There's been an ad on the radio here the past few weeks (from a car dealership, of all things), about "reminding people of the reason for the season." Yes, it does the whole "putting Christ back into Christmas" thing (whatever, I'm not too keen on commercializing holidays, either). What gets me the most, though, is that it basically goes into a rant about how Christmas isn't "merely 'the holidays'" or something like that, as if being a holiday (which, by definition, is a Holy Day) is a bad thing. The ad strikes me as the epitome of ignorance about just what (and how many) holidays are actually celebrated this time of year. Even if you only count the major, mainstream ones, there's three from the start of the season (Thanksgiving, Christmas, New Year), but then you have Yule, Saturnalia, Kwanzaa, Hanukkah, and I think there's a dozen other lesser-known ones scattered throughout (and if you're willing to go out into January a little bit, you also have Old Christmas on the 6th).