They thought similar things about chess - that it would make a generation of morons.

"The Simpsons" were controversial in the 80's, since they just knew kids would try to emulate Bart, just for a more recent example. My mother wouldn't let me watch it for some years on the single family television.

And lastly: I don't know if folks are reading fewer books or not if you count digital books. That said, I think folks read a lot more than they used to, since a lot of communication is text-based.