Prince Charles doesn't know what the hell he's talking about, that's the obvious thing I've discovered from that little speech. I think kids should be encouraged to participate in the things that excite them and not be made to feel that they're someone deprived or even stupid 'cause they'd rather play a video game than read a book.
A good video game can be very much akin to a good book, in my opinion. It's the next form of communication and entertainment and, when you get down to it, most books are nothing but frivolous entertainment. Does he think that if we encourage kids to read instead of playing computer games that they'll all go out and buy up copies of Plato's Republic? Are we going to see kids put down game controllers in favor of the collected works of Jane Austin? Hey-all no!
If I were a parent and my child was very much interested in video games (much like myself as a kid) I'd encourage video game-related educational activities. Teach them how to make cool pictures in Photoshop, teach them how to use UEd or *gasp* Radient/Worldcraft/QuArK. Teach them 3D Stuido Max. Give them Web space and let them loose on making a gaming site for their friends.
Also, they're just fukin' kids! Let them have their fun. Sometimes a kid wants to just play his video game. He shouldn't spend his whole day doing so, and other activities should be encouraged, but Charlie's acting like it's a dangerous narcotic or something.
Charles: chill, dude. Toke up and pop in a game of Sonic Adventure or something then rethink your plolicy on video games and kids.