My DS (7) has a TV in his room, he is the youngest in his year ( b'day 30 Aug!) and the baby of his junior school. He is bright, focused and motivated and IMO doing very well and has never had a bad report, in fact comments like "a pleasure to teach"...etc.
He is only allowed to watch the TV in his room on a Friday or saturday evening, even then it's a rare thing on a Friday as he goes to karate. It is a treat, a bonus in a way for all his good behaviour throughout the week.
He also has access to a PS2, we have had it for a couple of years now, but once again, he uses it in moderation as a treat and like with the TV it is closely monitored.
He loves "computerised" learning games and I certainly don't begrudge the odd 30 minutes on the PS2 if he is up to date with other things like homeworks, reading, spelling, karate...
My daughter (5) has Down Syndrome and funny enough, I started a thread in SN section earlier asking for ideas for a Xmas pressie from Nanny & Grandad!!! One of my considerations ATM is a game and eye toy for both of them to share.
yes, kicking a ball around outside is the better option, but let's face it, not always realistic.
I also like the idea that my DD can optimise the controls using her larger gross motor skills rather than the fine motor skills needed for a hand held controller.
My DD, like many other children , is a very visual learner and if by using a PS game for 30-60 minutes a week helps her development in any way, then it certainly isn't a bad thing in my humble opinion.