Real tree for us, every year. Growing up in AZ, and until we moved up here to ND, we used to get a tree permit from USFS and cut one from one of the national forests in northern AZ. The trip to get the tree was part of our family tradition. Spend the day playing in the snow, roast marshmallows and hot dogs over a fire, cut down a tree and head back home. Many fond memories of doing that as a kid. Our kids seemed to have enjoyed the whole thing as well.
Now up here, we just buy one, most years we've gotten good trees from Lowe's (surprisingly), they've been pretty fresh, and stayed alive through New Years. This year, we just (yesterday) bought one from the Costco (just opened) in town. It was $20, for a 7 foot tree. We'll see how it lasts, doesn't seem as fresh but hey, it's 20 bucks.
Live tree for us.