I have the same problem you do -- I don't like feeling like I am lying to my five year old when he looks me straight in the eye and asks, "Is Santa REAL?" I have three kids - 1, 3, and 5 - the others don't ask yet.. but my 5 year old is a very curious child. I don't look down on parents that "lie".. I think calling it lying is a bit harsh, even. But.. when cornered I feel guilty if I am not honest. So that is how I address it. What I told him is that Santa is an idea -- the general feeling of taking care of others. The spirit of Christmas is the idea of helping people, giving to those that don't have, appreciating what you do have and enjoying your family.
Every year we adopt an "Angel" off the angel tree -- one for each child, the same age as they are. We talk about how these kids don't have simple things like winter coats that fit them, socks, underwear, etc. Each child helps shop for their aged Angel. I've done this since my son was 6 months old. Basically showing him that people, keep Santa alive. We make it very real. He seems very happy with this, and enjoys it more each year.
Also this year we started going a new tradition. A few days before Christmas morning, we also go through old toys. 1/3 of current toys get put aside as a "Donate" for Goodwill/Salvation army/Shelter house. I talk to the kids about how much they have, and the waste of having toys around they don't even play with anymore. It's really nice, I've been pretty impressed with how giving they were. Plus it helps keep the clutter down.
We still put toys out at night, hang the stockings, and let the kids still enjoy the wonder of waking up to toys they didn't know would be there. We also do easter egg hunts and baskets when they wake up in the morning. We just enjoy the fun time as family time.
Good luck, I'm sure you will find something that works for you.