I just say thanks, but I don’t celebrate X-mas. I’m not offended, because it was the intention that counts, and they didn’t intend to offend me. I am, however, really cheesed when people try to talk to me in what little Arabic they’ve absorbed from living in large, cosmopolitain cities. Why would I want some weirdo calling me habibti (beloved) just because he thinks he’s cool cuz he knows one word in Arabic? A word of advice, don’t say AssalamuAlaikum unless you’re a Muslim, cuz that’s like the Muslim to Muslim greeting, it’s like trying to do one of those complicated handshakes with a gangsta, when you’re not one of them. The guy will just be like uh ok buddy… Just smile and say hi instead.