It's not simple, is it?
We were in public school in the US. Now, we are in the UAE and the kids go to a secular, private school based on American curriculum. A lot of American students, but not a majority. And many of the US and Canadian students are dual nationality, and many of those, Muslim. That said, the school does it up for Christmas, way beyond what our little public school back home ever did. Santa's workshop. No kidding. They did a "Winter Concert," and to their credit, they did songs from a lot of traditions, and in several languages. So that was nice. Also, there are huge numbers of all religions, as it's Dubai and it's a huge school. But still, I found more emphasis on Christmas than Eid. Which is weird, considering our location and that it is a secular school (Islamic Studies is mandated by UAE government for Muslim students, and Arabic for all students).
Back in the US, I pulled my kids out of Christmas concerts and had them study alternative stuff when the class practiced their Christmas music. Teachers were incredibly accommodating about things, and were also very interested in sharing OUR practices and traditions in the classroom. And of course there was never an issue pulling kids out for Eid celebrations.
I am trying to push dh to consider going with virtual school for next year, which would eliminate the Santa's Workshop and Christmas concert issue, and enable us to focus on doing our own thing. But, like your dh, mine wants his kids "in" school. I'm working on it.
That said, every Christian holiday is an opportunity to revisit what we have in common with, and how we differ from, our Christian neighbors and peers. Lots of teachable moments, lots to talk about.