I think many Catholic families do as your friends do, but as we are technically 'part of the establishment' I think there is more of a responsibilty to do things properly and not buy in to the overt commercialisation of Christmas that usually starts on the 1st November.
Your post intrigued me so I asked Sue, Sue went to a convent school, the Loreto sisters in Dalkey and she seems to remember very little Xmas decoration at the school prior to school breakup for Xmas, when compared to family homes. If you are ever in Dublin with time on your hands visit Dalkey, its a beautiful costal village on Killiney Bay. Its where Michelle Obama went for a pint of Guinness at Finnegan's with Bono.