Okay, I actually had a laugh or two. For some reason the [Cookies ignite] made me laugh, I guess I just wasn't expecting that. There's something about the combination of sacrificing cookie people, deliberate ms paint art, and summoning Santa that reminded me of the early Newgrounds days, in a good way. I like it just for the humor alone.
Here's what I think you did really well: The mood is certainly very Christmas-y, as a village of cookie people living in Gingerbread houses just makes sense in a Christmas-themed world. The small details like having the cookies look sad as you drag them to the circle is a nice touch. And the fail state is good too, you could have just show "GAME OVER" on the screen but you took it a step further to have the cookies sacrifice you instead for comedic effect, and it worked.
The music is a little harsh, though. Honestly, I think removing the music altogether would make the game more enjoyable. I'd rather play a silent game than one with bad music.
I took a minute or two to think about the theme and how the game plays to it. I think in this case, the narrative is what drives the theme more so than the mechanics. There's some element of sacrifice by going further away from the circle in the hopes that you'll find a cookie big enough to justify the time spent to get it, but this element gets quickly overshadowed by the quick and easy route of just going for whatever's closest and hoping for the best. Narrative or mechanics, either way, you stayed true to the theme, so good job for that.