The match is now set for December 16th, part of a gruelling run of four games in eight days, with Palace facing Manchester City in the Premier League on December 14th, KuPS in the Conference League on December 18th, and returning to league action on December 21st, away at Leeds.
Palace argued that both sides should have equal time to recover before the quarter-final, as Arsenal host Wolverhampton Wanderers on December 13th.
The South London club were open to a Christmas Eve game, but that option was ruled out after talks with the Metropolitan Police and Transport for London, who cited limited public transport services.
Arsenal, the home team, were also opposed to playing on Christmas Eve, while Palace later proposed December 23rd as an alternative, two days before Arsenal's trip to Everton (December 21st), kicking off at the same time as Palace's game at Leeds.
"I don't think that's fair, because we have other competitions we have to try to accommodate. We knew at the start of the season the competitions that each club is playing in," Arteta said.
"On balance, we have to try to accommodate the best possible way for everybody... There are other (options to December 23rd). Believe me, there are other options much better than this one. We already suggested that."
The Spaniard warned that fixture congestion must be handled with fairness and player welfare in mind, otherwise clubs might eventually consider withdrawing from competitions.
"I hope we don't go (that far)," he said. "If we have that big piece of paper with those two principles there in front before making any decision, all of us in our industry, we won't get there.
"If we don't and we just ignore that, then anything is possible."