As a guy with a much younger sister (11F) who has had an elf on the shelf for 2 or 3 years now, this article literally made me laugh at my desk. If you use your elf on the shelf in this way, I do agree it is slightly creepy. IMO, you should use it as a fun thing for kids at an age where they sort of realize the santa and all the christmas stuff isn't real, but is a fun thing to do; where it is a "lets take pictures of the silly thing the elves did last night while you were sleeping!" Most kids slowly start to realize it is all fake and fun, and at that age it becomes fun to play with the elves as family activity. When my sister first got one, she expressed that it was kinda creeping her out and without having to say out loud that santa isn't real etc., they let her know that it was all just fun and games. I have one that was "assigned" to me as well and honestly find it a blast taking pics with my roommates and I with the elf and sending them to my sister/little cousins. In fact I took mine on a christmas themed barcrawl and we had a blast taking pics of the elf with beers and in hilarious places.

But even if a parent is using them explicitly as a "the elf is watching and will report back to santa", while that is creepy, the step they are taking that it prepares children for the surveillance state is the stupides thing I have ever heard. You are taking a ridiculous step trying to extend what the elf on the shelf experience CAN BE with bad parents to psychologically/subconsciously preparing kids to be OK with the government spying on them as adults.

Even if you were to take that step, I would guess most parents don't use elf on the shelf in that very serious kind of way. It is honestly shitty parenting if anything.