I was a child with an NES and virtually every Nintendo machine thereafter. Parents said my first language was Nintendo.

I still played outside all the time. I regularly rode my bike all over town. I didn't have to be threatened to play outside. I dunno, people and situations are different, I guess.

That said, it's certainly harder for kids now. I have a hard time imagining letting my kid ride a bike all over town, mostly because of traffic and stupid drivers. The free public places I used to hang out with my friends are largely gone now. Plus, like you say, the games are now designed to be addicting specifically in the ways that regularly extract more money from players. It's just kinda bad if you're not versed enough in the gaming ecosystem to know what's a worthwhile experience and what's a cash grab.