New TV

The Hubs bought a new TV, which I do not approve of. We live in a tri-plex (is that what its' called? We have three levels, but none of them are full floors.) and we have a TV on each floor. As a person who grew up in a house without cable, with a 32-inch TV, and strict viewing rules, this is alarming to me.
The kids like their 'shows', and sometimes I like them watching their shows. But there is a lot of weird stuff on TV, and although I don't have them watch commercials, and I watch the shows with them, I get unnerved sometimes. I know The Boy is at the 'magical thinking' stage, and I'm sure TV watching doesn't help that. I want my kids to know that TV isn't real. (I have to remind myself of that after I watch my 'reality' shows!) I want them to be able to shut it off and go outside or go read a book.
As their parent, I know that it is up to me to monitor their TV intake, to talk about the shows, and to remind them to do other activities.
When we do watch TV, I sit with them, and we cuddle and we talk. I do not use the TV as a babysitter. Perhaps as a mother's helper.
I'm still pretty conflicted about this. But in my house growing up, we were taught that TV is bad, and thus it was forbidden fruit. I remember sneaking into the living room late at night to watch my 'shows', and it was my go-to activity if I wasn't feeling well.
New technology and the speed and ease with which these devices have entered our lives makes me question what the new reality will be. It is very likely I will not be able to keep up with my kids, and that scares me. But I am a self-proclaimed Luddite, a term I find endearing.
What are your viewing habits? Do you let the kids in your life watch TV?