Plot hole: Throughout the film we see several characters talk about how there's no Christmas spirit and how nobody believes in Santa anymore. If, in this universe at least, Santa does exist, it's almost impossible for people to think this. If the parents deliver the presents then how do they explain the excess gifts that Santa brings? We know that Michael is on the nice list because Santa shows him towards the end, so Michael must get presents from Santa. There is no way that Walter can't believe in Santa then because Michael gets gifts from him every year.
Other mistake: When Buddy's brother is reading Santa's list he reads the newscaster's wish he looks and mutters something about letters meaning they were in alphabetical order. However when he is saying random names he does not turn the page and the names are not in alphabetical order. (01:23:00)
Trivia: A human is found as a baby by elves, is brought up by them, then finds out he is adopted and heads out to the big city to make his fortune (and there are a lot of jokes about his height thrown in). As a Terry Pratchett fan, this sounds very familiar to me. Terry has a character in his books called Carrot who was found as a baby by some dwarves and was brought up by them, then finds out he is adopted and heads off to the big city to seek his fortune. Carrot is also very innocent and has no sense of sarcasm or irony. His adopted father also says something to him about thinking he'd figure it out when he hit six feet tall.
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