I don't have many Christmas images from the Happiest Place on Earth...but here are a couple! First we have a nice shot of Main Street, from December 1960. The sun is setting, decorations are everywhere, and the Fire Engine is comin' towards us. Pretty soon, the lights will come on...making everything just a little bit more magical.
This second photo, also from 1960, is from a window display on Main Street. When I first saw the slide, I thought it was a non-Disneyland image. But you can see the lights of some buildings reflected in the glass! The color is way off, but you get the general idea. This display seems to hint at the concept behind "It's a Small World" from the 1964 World's Fair. "Christmas Around The World With Dolls From Foreign Lands"...that's pretty much what you see in November and December when you ride IASW.
I wonder what the basis was for Walt Disney's obvious interest in the customs and cultures of foreign lands. Could it have been the "People and Places" series of films made for "The Wonderful World of Disney" in the 1950's? Whatever the inspiration was, this looks like another example of Walt assuming that if he was interested in something, the public would as well.