The episode is very touching. When Cory finds out that Shawn's dad has lost his job, he tries to give him one of his Christmas gifts, only to have it thrown back in his face when Shawn doesn't want charity. Cory learns about humility, the true spirit of giving, and best of all, friendship.
However, what really makes this episode is Morgan thinking she killed Santa Claus. It cuts the other story well and is laugh-out-loud funny. Amy walks in the house and tells Alan that "Morgan thinks she killed Santa Claus." Not even her parents can keep a straight face. It only gets better when Eric comes downstairs and reports Morgan is locked in the bathroom singing, "On the first day of Christmas, I murdered Santa Claus..."
Traumatic, probably. Funny, definately!