Well it sounds like Halloween is pretty horrible in some places. We organized our own party for our kids and their friends and played some nice traditional games (snap apple etc). We also adapted an old fortune telling game which they loved- put on a blindfold and reach your hand onto one of four plates to predict what the next year holds- the traditional one is not suitable for children so we picked four kid friendly options- an apple for health, water for travel, chocolate coins for wealth and a medal for success. I also bake the traditional 'brack' with charms inside.
The problem is not with the festival itself. I am in favor of old traditions being handed down, but absolutely not in favor of every holiday turning into a consumption fest with no community element at all. Kudos to all of you who have reclaimed Halloween for your communities. There is absolutely nothing evil about it in itself (its origins are much more ancient than 1600 and in fact the original had no 'trick or treat' at all!), but some sick people obviously use it as an excuse to do crazy stuff.