As a nerdish sort of person, I myself have a desktop computer, a laptop, and an iPad. I now also have an iPhone because my office was paying for me to have one and they let me keep it (because it's a 4 and not a 5).
The issue for me isn't the technology, it's a question of whether or not the kids are spoiled. Do they get everything they want because they whine for it? Spoiled. Or do they have the technology because their parents can afford it and it's fun and not abused? Not a problem.
Some days we are all hanging out as a family, other times we are all poking around on our devices. It's just another form of leisure. As a kid I was obsessed with reading, I still am. So my family would be hanging out and I'd be buried in a book. Same level of isolation although of course I think a book has tremendous value in terms of one's brain development and vocabulary.
My 9-year-old has a DS, but otherwise we own the technology and his use is regulated. My 6-year-old doesn't own any, but she uses my iPad all the time.
I really don't have an issue with it on principle, I can't make a judgement based solely on age and technology type. I don't plan to get a cell phone for Nathaniel until next year when he is walking to school by himself.
Anyway...I don't think it's a big deal unless the kids don't interact with anyone (and I'm guessing the parents don't either if that's true) or the kids are spoiled and given everything they ask for.