Drive around some of the estates and see the WONDERFUL decorations -people go to so much trouble. IN the case of our estate, we also decorate the public areas of the estate also.
If you are staying in a villa, I would not go to Disney on Xmas day- I would order your Xmas dinner from PUblix delicatessen, pick up on Xmas eve before they close. It is a delicious dinner with full isntructions -all fresh, mashed potato, gravy, stuffing etc- all included, and very good quality. Sit back and enjoy a relaxing day by the pool, and hit the parks on the day after- a little less crowded so you will get on more rides.
Celebration is real must, and if you can, book tickets for Miceys very merry Xmas party - well worth a visit.
All the Disney hotels do special holiday meals with characters -food not wondrous, but entertainment with young kids great.
Downtown Disney will have the ice skating rink -there truly is tons to do, and all so wonderfully happy and festive. THe candlelight processionaly at Epcot is another must see- when we went there it was a cool day, and it seemed all the more Christmassy for it!
Have a really good time!