You and the DCs are just sucked in by it and you haven't stopped to think how unpleasant they are.
Actually I don't play console games. But you are right. I don't stop to think how 'unpleasant' they are because to me they are a GAME. Same for the kids. They are perfectly capable of differentiating fantasy from reality.
When I was a small child, I used to run around playing cowboys & indians and 'army'. What's the difference?
What's important is how your child reacts to it. In a balanced upbringing, playing console games isn't going to hurt them. If there was something I am more worried about is the amount of time some spend on them. There's a child in my 10yr old son's class who seems to be on it 24x7. No matter what time day or night my son logs in, his mate is already on it.
For me it's just a case of get a grip.
If computer games breed violence then why in Japan where they have such games as well as a big Manga culture is violence and crime so low? Even in the recent floods and nuclear disasters, there was absolutely NO looting. Whilst in the UK we play less games and we had riots?