Some information about Chanukah:
After Alexander the Great died, his empire was divided up. Israel fell under Ptolemy's rule. Soon after, however, there was border dispute and the Seluccids took it over. The Seluccid kingi was fine with Israel as it was, but his successor, King Antiochus, was not.
Jason became the High Priest by bribery, as did his successor. Antiochus ended the political tumult around this by Hellenising the Holy Temple and outlawing all Jewish worship. No reading Torah. No sacrificing the Temple. Also, extreme taxes.
These outrageous, aggregious acts prompted Mattityahu and his sons to rise up agianst the tyrrany. They formed the rebel insurgence called the Maccabbees. (מכבי (Maccabbe) in Hebrew means 'Hammer,' and it is also an acronym for the words of the Mi-Chamcocha prayer.)
Though they were outnumbered, the Maccabees started decades-long war with Antiochus' Army and actually won by guerilla tactics.
However, they were not able to celebrate holidays at the Temple during the war. Making up for lost time, the Maccabees lit the Menorah and celebrated for Eight days (as they should have done during the holiday of Sukkot months before).
And so, Chanukah became a Jewish Holiday celebrating the Maccabees' military victory over Antiochus. Everyone lit the Chanukiah for Eight days each year to remember how the Maccabees used to light the Menorah every day and how they celebrated the Eight days of Sukkot.
Then, during the Roman times, the rabbis became afraid that the story and celebration of Chanukah( celebrating a military victory against a world superpower for Eight days a year) would inspire conflist with the Romans.
They decided that the best thing to do was to keep Chanukah but make-up a new reason why we celebrate it.
They made up this story: "While the Maccabees were driving Antiochus' army out of Israel, Antiochus' army made one final skirmish and raided the Holy temple. They laid waste to everything. When the Maccabbees came to celebrate Sukkot, there was only enough Kosher oil left to light the Holy Menorah for one day. (THe Holy Menorah was supposed to be lit every day, and it took a long time to get more oil; it looked like they weren't going to have enough oil ready by the next day.) However, a miracle occured and the one day's supply of oil magically lasted for Eight days instead of one."
Many customs come from this idea of the oil. We eat Latkes (Potato Pancakes, yummmm) and Sufganiyot (Jelly Donuts, yummmm) in CHanukah because they are cooked in oil.
We also give money to eachother (specifically in coins) to remember how great it is not to have Antiochus' horrible taxes.
Most Jews today still believe in the story of the oil. It's what we tell our children until they're old enough to hear the truth, that Chanukah is just a military Holiday.
All in all, Chanukah was a very small holiday anyway. As I said, it wasn't even a gift-giving holiday; we just gave money. It was a blip on the radar.
Until Christmas came around as a religious and commercial giant. To compete with Christmas and to make the Jewish kids not feel bad about not getting presents, Chanukah became a gift-giving holiday (often with Eight days of gifts). Some people even have "Chanukah bushes" to compete with Christmas Trees.
When you think of Chanukah this way, know that what you're thinking of is Western CHnuakah. It's not even a big deal in Israel.
It's Western. It's disgusting. It has Presents!