Controversy over words?

Looks like officials in the US are promoting the use of Happy Holidays over other greeting this season in the name of political correctness. Read the following article to get a flavor of this controversy - http://www.chron.com/disp/story.mpl/nation/3546005.html

I can understand diversity in belief needs to be recognized and respected but does that imply calling "Christmas" "Holidays" and pretending that Jesus's birth on 25th December and the Holiday season being at the same time is just a strange unrelated coincidence.