I want to thank Litvak for his lead to the Halloween articles here. Based on everyones comments and from what I observed this year I have come to the following conclusions.
1. Almost everyone who goes to a public school or a non religious private school takes part in Halloween.
2. Immigrants to this country who have never heard of the holiday celebrate as well. I base this on the Chinese families who rang my bell who did not speak English.
3. Whenever you give anyone candy for free without any conditions they are very happy and will be thankful.
4. Despite what people say about Americans knowing the real reasons behind Halloween I think Americans are not. I base this on how it has become a Hallmark Holiday and every radio show and every TV show as well as everywhere you went was Halloween based. When I went to the local JCC/YMHA the receptionist was dressed in a costume.
Therefore, I will continue to give candy to Trick or Treaters unless I learn something new that will change my mind. In one of the comments on the Hirhurim blog it is mentioned that Rav Yaakov Kamenetsky used to give out candy on Halloween because he loved children. It is a persons individual decision whether or not they want to spend money oon candy to distribute but I don't see the harm. I guess it also depends upon where you live. If you live in a real Chassishe Neighborhood like Crown Heights, Williamsburg, or Boro Park where there are not so many non Jews I can understand why you wouldn't want to answer the door but if you live in a neighborhood like I do where there are lots of non-Jews its good to make a Kiddush Hashem in my opinion by partaking.