A few years ago I came across Lamplighter Publishing. Lamplighter publishes rare old books that communicate character education themes. Over the years, I have purchased quite a few books from Lamplighter for my family. One of my favorites is Hedge of Thorns by John Carroll. These books make great Christmas gifts! Also, check out my list of Recommended Christmas Books for Children I posted a couple years ago. Since then, I would add the following to the list:
This is No Fairy Tale by Dale Tolmasoff (foreword by John Piper)
Dale alternates between what the fairy tale version of the Jesus story would be and the biblical version. Here's one helpful review of the book.
The Ballad of Matthew's Begats by Andrew Peterson
I don't have this one yet, but I've heard the song and I love Andrew Peterson's work.