I also think it’s a good place to mention the famous story of Rav Shach, Zatsal. When his son didn’t follow in his path, he said that it may be because they didn’t sing zmiros at the Shabbos Table (I assume he felt it was bitul Torah).
With so many kids going OTD, it’s not kidai to give up things that will help bond the family and give the kids a positive feeling for Yiddishkeit.
Obviously, the focus on Chanuka should not be on materialism, the gashmius should be of the simpler non-materialistic variety (like cookies) and for the purpose of increasing family unity and closeness to Hashem and an appreciation for Torah.