I would like to see more Biblicle games, but they always end up being terrible. I think relligous games could be quit fun if you don't have to make it "kid friendly." Who want's to play a game where you can be God, but instead of smighting your enemies you make them sit down and drink tea while you politely ask them to change their ways?
This would make an interesting mini comp: Make a game based on the Bible. Points would be awarded for accuracy to the Bible, Concept, and gameplay.
It depends somewhat about HOW you use religion in games.
Age of Mythology is an realtime strategy game (if you do not know it) that replaces the old Age of Empires 2. In the game is three different sides. Each side is based upon an old religion (a mythology): The Norse Mythology, the Egyptian and the Greek. The heroes you can get is based on historical characters and by worshiping gods you can advance in the game. The Norse Mythology has Odin, Thor, Freia, Loke and more.
As such there is a kind of religion in the game though the game itself is not religious. Personally I am not against religion in games. It is up to the developers to decide what to make and up to players to decide what to play.
Jesus vs. Santa sounds a lot like one Southpark episode I saw where they make a cartoon where Santa and Jesus fight over what Christmas is all about. At the end of the cartoon, a really messed up Cartman comes out and says Christmas is about presents.