We are fully 'teched up': mobile phones, iPods, DS's, PS1, 2 and 3, Wii, Gamecube, PC, Mac, and, to be honest, I don't know what else. We don't set any limits on usage. At the moment, Guitar Hero is being played daily and is, I think, the biggest hit yet.
But, when friends come over, they don't typically play the electronic games, since they all have them anyway. They usually go outside and play - into the woods, down to the river, running about the fields playing, often games inspired by movies or games or books they are all familiar with or sometimes games of their own making.
I grew up without any tech whatsoever, even TV or radio, but I know that my 16 year old is more mature and more well-read than I was at that age. The tech stuff has added to their overall experience of life and, at least in my opinion, has taken nothing away.