The Internet may prevent institutionalization for many mamas and papas, but for kids it can be an activity that encourages more isolation than connection. According to one study, the Internet makes it more difficult for kids to relate IRL (in real life) if they spend too much time with the chatting/emailing/My Space-ing.
Even very young children who can learn important socialization skills during their young years, are damaged by too much time playing video games. I'm not sure this warrants a full Waldorf reaction, but it certainly makes me less inclined to let my young girls play Mickey Mouse computer games.
Whether it's really the Internet or other key factors (less time with parents, more television, more exposure to violence). In reaction the studies findings, schools are encouraging kids to build friendships by having friendship days. Friendship days? We're not doing our job people. And we shouldn't expect schools to pick up the slack.