Christmas Holiday Festivals

S., there are a lot of really fun things to do in the local area for the holidays.

lenhertz avenue in aurora will have the display set up the first week in December. make it a yearly tradition for your family. You drive down the street with windows cracked down to hear the music. there are displays in all the yards with the Christmas story written on big display boards shaped like bible pages along with figures of the animals, and the wise men and the holy family. it is beautiful. at the end there is a big nativity scene. when you go on across Ohio there is lenhertz circle which has the peanuts christmas story. also good.

there is a lovely tree lighting ceramony, the parade etc
in montgomery and oswego both there are tree lighting ceramonies and festivals. (the oswego one is great we go each year both friday and saturday.

http://www.enjoyaurora.com/december11.html

Again, nothing like you're used to, but our kids love going to winter wonderfest at navy pier every year over Christmas break. The entire ballroom is decorated and filled with rides, blow up slides, an ice skating rink and more. The first time is especially magical. It opens the first week in December. We always go on the first day when it's never crowded.

Not quite as spectacular as your Bavarian Village outing, but here are a couple options:

A number of my friends attend the electric parade in St. Charles as their annual kick-off to the holiday season. Plus, it's super-close to home.

http://www.downtownstcharles.org/holidayhomecoming/

Of course, there's always the downtown Chicago Mag. Mile kick-off. This year it's on 11/19. In general, I don't take my young kids downtown for much. However, with older kids (grade school and up?) I'll bet it could be magical.
http://gochicago.about.com/od/eventsfestivalsholidays/p/m...

We have been in Lake Geneva WI in December and have loved all the activities and festivals that are planned. Very cute and quaint little town. There is an indoor water park also where we have stayed and had a great time with the kids!

http://lakegenevawi.com/Calendar/events/?l=1