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Can you just imagine the kind of things that traverse the playground from one phone to another?"
Yes, I can. I've grown up with it.
Honestly? I really don't believe that the internet has the kind of effect on kids that people think it does. I'm hugely skeptical of the scare stories that have been coarsing through the media on this matter - I remember one example last year where headline was something along the lines of 'internet porn turned my child into a sex offender.'
Much as I appreciate that parenting must be very difficult, particularly when faced with an uncertain influence such as the web, I simply do not believe these stories, and I would be willing to bet money on a large number of them being faked or at least grossly exaggerated.
Children are not the innocent, sweet, precious little things that we think they are. They are violent, manipulative, sneaky, and often quite ruthless. I'm not convinced that the kind of material that some adults would call 'shocking' actually creates anything in a child that is not already there.
I do have some sympathy with Perry's points, though, simply because I think the internet has made "grooming" by malevolent adults much, much, much easier than it was before. It's still pretty rare, don't get me wrong, but it's also much easier, and young kids aren't as savvy when it comes to social networking (e.g. in what circumstances you shouldn't agree to meet someone you met online) as older folks are.