With my kids we draw a big distinction between "consuming" and "doing". Watching a youtube video = consuming, listening to music = consuming, playing a active puzzle solving game like mario or zelda where you have to have a plan and figure out how to achieve what you're doing = doing, drawing pictures = doing. There are lots of grey areas in here, but they're aware of the intent.

I also put a lot of weight into socializing around it - if my 2 kids are playing a game on the ipad together where they have to negotiate and compromise about what is going to happen, who is doing what, when they have to take turns - that's a better use of their time than binge watching disney. (same goes for adults, I believe).

Also to be fair, this is where we've gotten as 5-10 year olds, was always limited+supervised when they were toddlers.