Has anyone else seen or heard about this? This is insane.

I can find nothing on the internet other than responses to the original article. I think this is fabricated.

Not actually the whole truth!
And no I am not a fan of this administration but prefer factual stories. The President was not present at the meeting. Supposedly the story took place in 2013 at Camp Shelby in Mississippi. During a pre-Christmas meeting with members of the 158th Infantry Brigade, the discussion turned to the upcoming Christmas football tournament. According to a soldier who was present at the meeting. It was at that point that an equal opportunity representative stopped the briefing and told everyone they couldn't say Christmas. The equal opportunity representative also told their commander that not everyone celebrates Christmas and they should not say Christmas.
http://www.foxnews.com/opinion/2013/12/24/army-dont-say-christmas.html