I'm going to disagree with the group on this one, partly because I get into Christmas lights in a BIG way (SoCal Edison LOVES me!) and because fighting about it won't help anyway.
My suggestion is to have a "different kind" of Christmas decor, just because she requested it and to honor her new non-Christian beliefs. Put "phallic" bulbs in your light strings to celebrate life and improve the Karma in your house.
Just imagine the warm feelings she will experience every time she turns into the driveway. And it will spark "community interaction" in your neighborhood that is so lacking today.