I'll find out in due time when my kids get older, but I think #1 is overblown due to #2. It probably varies by region, but there is so much demand for "back to the roots" where I live, that I don't think this will be as bad socially as you say. There will be other like-minded families, and the bonds between my kids and those families' will be more enriching and meaningful than the average, device-oriented ones.

Some degree of device pragmatism is inevitable of course. But I don't think my kids will need a smartwatch until high school, or a phone till very late HS. In other words, I think there is a balance of these options possible.

Jonathan Haidt gives a lot of hope here, as depressing as "Anxious Generation" usually is.