Here's another spin. If you go waaaayyyy back in history, various pagan events used this holiday to celebrate/encourage/predict demonic mischief and the underworld was pretty much believed by people to run free on Earth causing trouble. I'm sure it was great fun for some, but many many people were terrified by this belief.
Churches reacted to this holiday/belief/terror by opening their doors to people for shelter and comfort. In time of fear, churches offered an alternative place to hang out for a day or so. We snicker at this, but most people took this stuff very seriously. I think Halloween provides Christianity with a strong story to tell. Now, as then, Christ and His Church provides the same offer now and tomorrow for real or imagined fear.
I don't think local churches should shy away from the holiday; just explain it. Anyway, that's the way I look at it.
Good take on it.