Santa Claus is Comin' to Town/YMMV

Moral Event Horizon: Crossed by Burgermeister Meisterburger when he burns a pile of toys--in front of the kids no less—just after he arrests Kris with a cheap trick.
Narm Charm: The story, animation, and songs are just so cheesy that people can't help but still enjoy it.
Non Sequitur Scene: See What Do You Mean It Wasn't Made on Drugs? below.
Special Effects Failure: The kids are supposed to be crying at the toy bonfire, but they clearly have smiles on their faces.
The Untwist
- "Ooooh, she's Mrs. Claus!" Yeah, we never saw that coming.
- "I knew it, I knew it, that's how he got his name!" Yeah, the fact that it is his (birth) name should have been a clue.
Values Dissonance: After two generations of increasingly extreme paranoia over children being sexually abused/molested/exploited, the song "If You Sit On My Lap Today" just doesn't sound as innocent now as it did in 1970. If Kris sang that today in Anytown, U.S.A, he'd either be chased down by an angry mob or beaten down cowboy-style before being forced to register as a sex offender for life. The sequence featuring this song has been edited in all modern-day airings.
What Do You Mean It Wasn't Made on Drugs?: The "My World is Beginning Today" sequence, possibly one of the trippiest scenes in all of animation. Yes, it was 1970, but seriously, what the heck? May also be a contender for Non Sequitur Scene, since the song has absolutely nothing to do with the rest of the story, though it does mark Jessica's Character Development.