haha.. I love the "This generation is going down the tubes, we're all doomed!" comments which each and every pre-generation forecasts.
A lot of parents spoil their kids, or buy them fun stuff before going to college. A lot of kids also have high school graduation parties which end up bringing them upwards of $1,000-3,000 from relatives and friends.
Many kids do very well in college, which classes get harder and more advanced as time rolls on, yet still find time for video games and other fun recreational activities. I'd much rather see the kids buy these "toys" than alcohol and drugs.
My 12 year old has his own gaming pc, XBox360, Wii and LCD TV all in his bedroom. He still gets straight As in school.
Quite a few of the gadgets are silly and useless, however it's not the gadgets, the marketing or whatever destroying this 'generation'. There will always be bad apples in the bunch, but this generation of college students is no more or less worse off than the last.
The world isn't going to end and when these kids grow up they won't be screwing up the country/world any worse than the current adults running the show.