Why not? Nick Frost was alright, but his version of Santa seemed just like some regular fumbling dude.
Colin looks and sounds the part, and I reckon he would have brought a greater warmth and sincerity to the role, which would have been more appropriate than the more ironic take on Santa we got, which just felt a bit cold to me.
And sure, maybe that's just the writing or directing or whatever, and Nick could probably play it that way too, but Colin would also suggest that this was some part of the Doctor's conciousness yearning to be with his friend again, adding another layer of ambiguous to the ending.
I think it would have been clever anyway.