What do you guys think of the "Elf on the Shelf" idea?

My daughter has been telling me that several of her schoolmates have an elf that eats goodies left out for him and reports on their behavior to Santa.

Apparently the parents have great fun with it, reminding the kids that the elf is watching to be sure they’re being good, and they dispose of the goodies and frequently move the elf to a different location in the house.

The kids also seem to love knowing that their own personal elf is reporting to Santa each night. They have fun leaving out the crackers and water and it’s a blast for them to get out of bed each morning and find where their elf is hiding that time.

So what do you guys think about this tradition? I think it sounds kind of cute!