You have gotten a lot of good advice here! I am getting a lot of input that I am sure is going to come in handy in the not too far future.
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I wanted to chime in on the one-on-one idea. Whenever our two small ones (almost 5 and almost 6) get a bit like that, splitting them and doing something interesting with each of them for a few hours really works. I think it helps rebuild the contact that you need for the kids to tuned into listening to your voice. We have sometimes split into groups of two (one child, one grownup) and let each child choose an activity. They generally choose a museum trip or a long, cosy session of being read for.
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As for the Christmas activities, I think you should not let the kids' unruliness ruin the holiday for everybody. I realise that you have not meant to cancel Christmas as a punishment, but simply have not been able to do anything because of all the mess, but it can easily be perceived that way. "Since we were bad Mommy said we couldn't have a nice Christmas." I think that would probably be really demotivating. It might take some effort to get to do your holiday activities, but I think it is important not to make the kids responsible for things like that. When things are a bit uphill, it often helps me to think through exactly which practicalities, in detail, need to happen for whatever activity you want to happen, and make a detailed plan for it. Then tell the kids about the plan and follow it through. Just accept that it is going to take a lot of time and patience, it will probably be two steps forwards, one step backwards, but stick to the plan, and focus on the goal and whatever they do right. (I'm not very good at explaining what I mean now, am I?)
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I sometimes manage to see situations like you are describing, i.e. when things have gone a bit wild, as an opportunity for the whole family to learn communication and co-operation skills, and to work on the relationships between all the persons in the family.
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Btw I agree with the rest that tomato stalking (was that the expression?) is not too extreme as a natural consequence when kids that age are not able to show that they can be trusted out of sight.