The religious aspect is being phased out by the all inclusive crowd, all inclusive of course unless you’re a white Christian. Especially evident when You see women in hijabs with their children wearing Santa clause hats walking down Main st. Atheists also partake in the holiday. This is why the use of Christmas is not allowed. It’s turning into a commercial holiday that has nothing to do with Christ. I don’t think Santa on a fire truck screams Jesus has come.
The Diwali celebration just focused on the food, clothes, and dancing as well. Not the religious aspects. It is that way with all holidays. All holidays have religious and secular aspects. The secular are part of the public celebrations to make them fun and inclusive (and not totally weird for the non-religious) for everybody. The religious portions are done at home or in church (or place of worship) without anyone stepping on anyone's toes about how it is observed.
Does that sound wrong or bad to you? It sounds exactly right to me. I wouldn't want to live in your world where you would choose a preferred religion and make public spectacles of it constantly to the derision of others. Because I would bet everything I own that as much as you would love a religiously themed public forced Christmas celebration you would equally hate a public forced Eid Al-Fitr celebration at the end of Ramadan.
The best solution is to have Christmas AND Diwali AND Eid celebrations but focus of the secular communal aspects of it in mixed public celebrations. The religious aspect is for those who seek it out and follow it to worship privately.