In other words, he knows when you've been bad or good. Not when you've thought bad thoughts or thought good thoughts. It's what you do that counts.
So Santa Claus has always been good to me. It's our actions that make us truly moral or immoral citizens of this crazy world, and Santa rewards the people who are good.
What about Jesus Christ? According to Amy Henry's blog, The Flawed Theology of Naughty and Nice Lists, it doesn't much matter what you do. It's what you believe that matters. You can be angry, vengeful, hurtful, even murderous as long as you're truly sorry and ask Jesus for forgiveness.
Amy believes we should beware of Santa's naughty-or-nice philosophy. She thinks it sends kids the wrong message. What really matters, according to Amy, is what's in our hearts. What you actually do is far less important than what you believe.
"... thank God that He doesn’t separate us out into naughty and nice, but places us in one big category called ‘forgiven.’And Amy isn't alone in this strange theory. It's what Christianity is all about, from the Pope himself down to the meekest shepherd tending goats. Christian morality isn't about what you do, it's about what you believe. If you fail to live up to Christian standards and hurt someone else, Jesus will forgive you. (Never mind that your victim might not feel that you deserve forgiveness.) No matter how awful your sin, and how many you hurt, you can be forgiven if you're truly sorry and believe that Jesus Christ is your savior.
In my book, Christian morality is fundamentally flawed. I'll take Santa Claus morality any day.