I refuse to lie to my children, be it Santa or the bunny, I'm just not gonna lie to them. Once they get older they will just resent you for it, I for one will opt out for this. I'm personally thankful that my parents did not lie to me about these things.
I do remember the first and possibly the last time one of my parents did lie to me about something. It shattered my reality, I lost so much respect for them. I don't think that people understand how much harm this will cause to a young one. Whatever the excuse may be it's just not worth it in the long run. No lie will ever bring about good, it's just not possible. It's sort of like saying this beating/abuse will help you in the long run. It's just not true.
I felt so bad actually telling the TRUTH to my son about Christmass etc. How effed up is that? Crazy world man......