I think DVDs are worse to be honest. It's the same show each time so they're learning nothing new. However I think Waybaloo is a tad young for a 5 year old and wouldn't dream of letting my dd watch it. It's just pointless drivle for a school child,great for a baby. I like C&L,The Large Family and Grandfather in my Pocket and a couple of others.
Personally I don't have a problem with TV and think it's valuable in it's right place. I think you're investing too much time in her,she's using you as entertainment like the TV,she needs to learn to entertain herself.
My 3 6,6 and 5 have a strict no TV ban in the mornings. I really think TV before school isn't good. I childmind too so often have 6 kids in the house for the school run. I lay the table up with colouring,stencils etc and have jigsaws out so the kids can automatically go to them instead of wondering what to do. The playroom has roleplay things out and they all play in the bedrooms too(dollies,Lego etc). I'm in the process of making all our craft stuff more accessible so they can access it better.
When they get home from school I let them watch Ooglies,Backyard Science, something about the worlds deadliest creatures on Pop and a couple of others. We've just discovered Blue Peter. I think some TV after school is no bad thing,there are some fab shows out there and they need to chill. My 3 have a Oggy and the Blasted Cockroaches obsession though which I'm trying to wean them off so I've been letting them see far less,some nights after school I haven't switched it on at all and they haven't even missed it.
I am firm though,DP and I are the TV bosses in our house and the DC have always known it. We have full control over the remote, if they complain(which they rarely do) they know they'll miss out completely for a looooong time. I certainly don't expect to be entertainment officer when it goes off. We have a house full of lovely toys, I play with the baby or sort bookbags,shoes,packed lunch boxes so they're well used to sorting themselves out. I support their play but don't constantly lead it.
At the weekend we've started banning TV until the evening when dp and I are on our knees. If they say they're bored they get a flea in their ear and we've seen some lovely play as a result. We find if we stick out the temptation at 7am to stick it on they play better the entire day.
I think you just need to decide what you want,lay out the new ground rules and stick to them,she will be a pita to begin with but you have to stick it out. I'd make some play suggestions only occasionally,make sure everything is accessible then leave her to it,do this regularly so she gets used to it. If she approaches you give her a hug but say sorry I'm busy. After a while she'll get used to amusing herself without TV.