I prefer Happy Holidays. Why? It is something I can honestly wish everyone I know.
I went to a public high school. There was no Christmas break. There was no day off for Yom Kippur. There were 'vacation days'. There was no singing Silent Night in choir class for the holiday concert. The German teacher got in trouble for teaching us 'Stille Nacht'. In other words, we got the secular versions of holidays. Which, for the most part, was what everyone could agree on.
I am Jewish. My husband is Catholic. I have cousins that are Buddists. I have friends that are Muslim.
I may not understand their holidays to the extent that they do, but if it is a joyous event, I can feel comfortable wishing them a happy holiday.
I have been wished Merry Christmas millions of times in my life. I usually respond in the same way: I don't celebrate Chrismas, but I will parlay your wish into a Happy Hannukah.
Most people will say something along the lines of: Oh, sorry. Happy Hannukah.
Occasionally, I just get a blank stare of confusion.
Once I got a "Funny, you don't look Jewish".
It is the last that bothers me the most. Part of the whole new issue of having to specifically wish people a Merry Christmas instead of Happy Holidays is relgious profiling. I don't look Jewish, so I must celebrate Christmas.
Today, I got an email from the alumni director of my high school. He was wishing them a 'Blessed Merry Christmas'. I sent him back an email saying that maybe a Happy Holiday message could be sent instead, so that we could focus on our similarites (Holidays) instead of our differences (Christmas). Not once mentioning that I was Jewish, or impling that I was offended, just sort of an FYI thing. He sent me back a message saying that everyone should be wished a Merry Christmas in order to celebrate the birth our our lord Jesus Christ. Five emails later, the closest I can get to this guy understanding me is his reply wishing me a happy Hannukah and a Very Merry Christmas.
Bottom line: if you don't know someone well enough to know what they celebrate, either don't wish them anything or just wish them a Happy Holiday. The ubiquitious nature of having every clerk who hands you change in a store wishing you a happy holiday cheapens the wish. Save the statement for when you mean it.