There is a lot of wisdom in this - the heart can be deceived into thinking it desires things which in fact only destroy the soul. As Oscar Wilde said -there are only two tragedies in life: not getting what you want; and getting it. But I believe that the fundamental idea of good and evil can be understood by conscience because, as the scripture says, the law is written on our hearts.
Personally, I do not believe that evil resides in dead matter but in thoughts and actions. Whether a tree is evil or good entirely depends on the intention. The Bible here is criticising the pagans, that they take a tree, cut it down, dress it up to use as an altar. This is a critique of their faith: they take something God created, cut away all life from it, and take this dead thing and dress it up, with fancy priest robes and rituals, but it is useless, and can no longer grow or even stand on its own.
So a Christmas tree is no longer at least used as a pagan altar in our society, it is a decorative prop, which might bring positive emotions to a person, memories of their parents or their childhood. I think this is a good thing.
But at the risk of sounding like Charlie Brown, if it is used as an "altar" to this festival of greed and consumerism that Christmas has become, then it is exactly as the Bible says, a vain and lifeless thing.