I think it is easy with this topic to become a bit black and white: screen time is damaging vs unlimited screen time is a reality of modern life.
Like most things, I think the reality is somewhere in between.
I think both the extent and the type of screen time is very relevant. The time limits are suggested averages, as I understand it. That means if your child has several days without screen time at all, then has a day of feeling poorly, or the weather is awful or mum has a work deadline etc, they could be on a screen several hours spread over that day. So long as that then reverts to being none or one as a rule. It doesn't mean that a few days of having the flu and watching dvds will damage them for life. There is a time and a place.
I also think the content is very relevant. When ours were under 5 - and even a bit older to be honest - I always selected very gentle, slow-paced things for them, with a calm narrator and lots of educational content. I liked Maisy, Percy the Park-keeper, Postman Pat, Kipper, that kind of thing, where everything they were seeing was carefully explained and there was no shrieking or fast-paced, frenetic action. A little bit older and I think Charlie and Lola was quite good, and some of the Roald Dahl movies like BFG and there were lots of quite good documentary type things like that dog and lady who flew in a plane to investigate things like toothpaste factories or how oranges grow - I always forget what is is called.
It is interesting as the BBC article today alluded to this, showing how watching adrenalin-inducing content while in a passive state is arguably an area of concern.
I also think it helps if you still interact with them. I used to put on a dvd during ironing as I hated them running round with a hot iron in use, but every so often I would look up, try to see what was happening and say something goofy like "Oh look: the dog seems to like chewing on that bone! Would you like chewing on a bone? " or "The orange trees look pretty with all those oranges don't they. I LOVE juicy oranges." You feel a bit stupid, but I think it makes it more interactive. They are only little: they don't care if you sound ridiculous.
It is leaving them for hours and hours with no interaction and no careful selection of content that is the problem. Screens can, I think be used usefully and even educationally.