Are We Ruining Our Children by Micromanaging Their Lives?

Clemens Wergin and his family had just moved from Germany to America, where he'd taken a new job. On the family's first day here his 8 year-old daughter slipped out to explore the neighborhood. Writing in The New York Times, he tells us that, when she'd returned, "Beaming with pride, she told us and her older sister how she had discovered the little park around the corner, and had made friends with a few local dog owners." It seems, though, that their new American friends "are horrified by the idea that their children might roam around without adult supervision." He goes on to point out that:

In Berlin, where we lived in the center of town, our girls would ride the Metro on their own — a no-no in Washington. Or they’d go alone to the playground, or walk a mile to a piano lesson. Here in quiet and traffic-safe suburban Washington, they don’t even find other kids on the street to play with. On Halloween, when everybody was out to trick or treat, we were surprised by how many children actually lived here whom we had never seen.
A study by the University of California, Los Angeles, has found that American kids spend 90 percent of their leisure time at home, often in front of the TV or playing video games. Even when kids are physically active, they are watched closely by adults, either in school, at home, at afternoon activities or in the car, shuttling them from place to place.
Such narrowing of the child’s world has happened across the developed world. But Germany is generally much more accepting of letting children take some risks. To this German parent, it seems that America’s middle class has taken overprotective parenting to a new level, with the government acting as a super nanny.
Just take the case of 10-year-old Rafi and 6-year-old Dvora Meitiv, siblings in Silver Spring, Md., who were picked up in December by the police because their parents had dared to allow them to walk home from the park alone. For trying to make them more independent, their parents were found guilty by the state’s Child Protective Services of “unsubstantiated child neglect.” What had been the norm a generation ago, that kids would enjoy a measure of autonomy after school, is now seen as almost a crime.

Danah boyd discusses the same phenomenon in It’s Complicated: The Social Lives of Networked Teens (Yale UP 2014), where it's the flip side of intense use of social media by teens.
Is that where the modern world is headed, to lives controlled by authority where action is limited to choosing which media channel to consume? Are we preparing to turn ourselves over to our computer overlords?