I don't see anything wrong with this. It's up to parents to decide how they want to raise the baby.
I used to think this too, until I became a dad and started reading up on brain development. It is pretty well established that children under two shouldn't be exposed to screens (TVs, iPads, etc.) because screen time inhibits proper brain development. Infants need real-world objects to look at and interact with so they can properly develop depth perspective and motor control.
From http://www.healthychildren.org/english/family-life/media/pages/why-to-avoid-tv-before-age-2.aspx:
Good evidence suggests that screen viewing before age 2 has lasting negative effects on children’s language development, reading skills, and shortterm memory. It also contributes to problems with sleep and attention.
So this enters into the gray area between letting the market decide versus taking action to stop a known harmful product from entering the market.
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This overprotective nonsense I sometimes hear is so ridiculous. It is not about the screen time, it is about unsupervised screen time, the point where the TV becomes a babysitter.
It actually is about the screen time, and there's a mountain of research to back that up. But you are right, TV as a babysitter is also a bad thing.