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I think it's fascinating how little sense the entire movie makes. It's like it operates on dream logic, and the universe is shifting from scene to scene.
>kid claims he saw Santa run over Grandma
>nobody believes him because Santa isn't real
>the kid gets in touch with Santa and manages to prove his existence to the world after simply typing him an e-mail, which apparently no one else had ever before thought of doing
>after it turns out that Santa is real, nobody questions it or thinks there's anything strange about that
>Grandma disappeared around Christmas but the family is still wearing black and mourning her in next September
>Santa had ran over Grandma, injured her and caused her memory loss; then he took her to the North Pole and kept her there for a year instead of taking her to the hospital, or the police, or even knocking the door of the nearest house to ask for help
>but Santa still isn't guilty of injuring or kidnapping Grandma because it was Cousin Mel who had spiked a cake to attract reindeer
>which means that somehow Mel had known that Santa was nearby and she knew the reindeer would run over Grandma even though nobody else at that point knew or believed that Santa exists
>the vocals of the titular song are sung during situations where characters are trying to deliver dialogue at the same time
>the lyrics describe Grandma's gruesome death
>even though she's not dead