Philosophical discussions of 7 year olds

Yesterday, E lost a tooth at school. He hadn't even told me he had a loose one, and right after the morning bell he pulled it and went to the office and cleaned up. Everyday, I not only pick up E, I pick up a 6th grader and two of E's classmates. They are Justin (6th grader and Jenna's brother), Jenna, and Trace. The 2nd graders started to discuss the "tooth fairy" and whether she would come to E's house tonight. This is the conversations as I remember it:

E: I think she'll come tonight. She always leave those gold dollars for me and K.
Trace: I don't think she'll come. This economy might leave her short.
Jenna: Of course she'll come Trace, she always comes.
E: I think I'll leave her money tonight. She always leaves me some, I'll help her out.
(It really deviated from here)
Trace: What do you think about the Easter Bunny.
Jenna: What do you mean?
Trace: Do you think he's real?
Eric: What do you mean?
Trace: Think about it. How can he take Easter eggs all over the world without breaking them. Where would he put them all?
Justin: Trace, the Easter bunny is real. (Justin is obviously trying to keep the illusion alive as he looks at me from the front seat and smiles.)
E: Trace, the Easter bunny gives us those plastic eggs with candy and coins in them. I don't think those can break.
Trace: Really, I get the real ones. The are hard boiled though.
Jenna: I KNOW the Easter bunny is real and you're wrong Trace.
E: Yea, I agree with Jenna. She is real, she is.
Trace: Yea, I guess you guys are right.

About this time I pulled up in the driveway to deliver these kids to Justin and Jenna's house. Trace's stays with them until his parents get off work. As they are getting out of the truck...

Trace: You know, we haven't touched on Santa yet.
Justin: Trace, "SHUT UP!"

Trace is a really smart kid. He knows more about football and many sports than kids twice his age. He follows stats, knows formations, and pays attention to standings and key players. It's pretty obvious he is starting to think more concrete and logically. Jenna and E are still keeping the illusion alive. Justin and I just sat back during this exchange and smiled, seeing where it would go. Justin is a neat kid, trying to thwart Trace's logical conclusions. I wished him luck as they got out, because I'm sure this conversation would continue after they got in the house.