Hi CanadianGran, the fluffy plant is a Selaginella, possibly S. kraussiana, commonly known as club moss or spike moss (it's not a moss actually) and related to the Resurrection plant.
They are really suited to terrariums, as they need high humidity, so it may shrivel a bit grown in the open. It's so annoying when plants with such different requirements are grouped together in an arrangement, purely for aesthetic purposes, so it will be a good idea to separate them after Christmas, as you say.
Should I be doing more for my daughter and grandchildren?
Anyone else suffering from the tree pollen?
Support and friendship for those whose lives have been affected by estrangement.
