Question
Why do people decorate Christmas trees?
Answer
Because they like the activity.
For common individuals, decorating Christmas tree is to play with children and to amuse them or themself as well as to decorate their home/ town. Bear in mind, historical evidence shows that Christmas tree is a kid toy, an entertaining object, with zero or very little religious significance.

However, for some thoughtful individuals, decorating Christmas tree is not only to play and to entertain, but also to remember story of the Paradise in Genesis 2. The origin of Christmas tree was Paradise Tree or Tree of knowledge (Genesis 2: 9) in medieval Paradise Plays, performed around Christmas.
And out of the ground made the LORD God to grow every tree that is pleasant to the sight, and good for food; the tree of life also in the midst of the garden, and the tree of knowledge of good and evil. (Genesis 2: 9)
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