I'd play games and LP records all the time when we weren't outside. The girls* didn't go to gan, nursery, pre-school until they were three, which was considered rather old for our Bayit V'Gan, Jerusalem neighborhood. Everyday we'd go to the local grocery store and the playgrounds at least once. We had a few friends who kept a similar schedule. Life revolved around hanging the wash, shopping, playing and visiting.
Periodically we had TV's, including the two years on shlichut in London. At some point television became a regular member of the household. Maybe it was because the kids spent too much time watching it at the neighbors.
TV is pleasant entertainment for me today, but I really credit the lack of television for better pre-school intellectual development in my kids. That personalized one on one stimulation can't be done when the screen beckons. And I certainly read less when the TV is on, but once you have it, it's hard to keep it off, even when there's nothing really worth watching. Our TV is in the livingroom, and our living room is one big open kitchen/diningroom/livingroom.
If you really want to restrict TV time, it's best to have it in a room you rarely enter, but that's a luxury many don't have. Space is at a premium.
*The boys were raised in Shiloh. The older one was a month and a half when we moved to Shiloh and our youngest was born when we already lived here.