Our children have been denied the opportunity to respond to the everyday challenges of life. We have even denied our children the opportunity to even do sport, a classic place where we provide challenge for them. I'm afraid going for a walk with your parents and baking a cake, although they are very nice, do not challenge someone to do something outside their comfort zone and will not help them develop a good attitude to life
How many people, adults, though, are struggling with this right now? A lot according to mumsnet. Being able to keep yourself mentally as stable as you can (which is hard and not entirely in your control), find enjoyment in boring things, and get on with people you haven't chosen (your family!) are all life skills too. You don't need to travel round India, or compete in sport, to find life's challenges- this IS one of life's challenges for us, as we are used to being far less constrained, and far more free to buy and do what we like.
I've taught lots of young people over this pandemic already and I've been impressed with how much some of them have cracked on with it- even students in isolation in tiny rooms, again and again. Many said to me it's boring, but I got a lot of work done! The vast majority of my students might not be very happy, but they have done their work and handed it in, and the few that haven't are being supported the best we can (although I do feel the university could have better prepared by having more investment in wellbeing services, ours are quite good but they are really straining now).
I'm not trying to say it's all rosy, and if you have a child/teen at home with mental health issues, it's a nightmare, frankly, but that doesn't mean every single child is suffering deeply by having to be contained a bit, because they are not.