Our kids have both always had a TV on - whether it was the news or something else, it was on.
AAP's policy (http://www.healthychildren.org/English/family-life/work-p...) mentions interactive play in favor of TV time because of unknown effects on the child due to viewing.
I think it's a bold statement that is open for interpretation.
It's impossible to completely shield a younger child from TV when there are older kids.
What we find most often is that monitoring what they watch is most important. Our kids are 2 and 4, and we're selective about their programs preferring shows on Nick Jr, and PBS.
Because of the warm summer weather, our entertainment of choice after work is to be outside playing and a little TV as they wind down. Sometimes it's a movie we've rented from the library or a show we've DVR'd (our 4 year-old loves Word World, SuperWhy, etc).
I think their position statement comes from people who use a TV as a baby sitter instead of spending the one-on-one time working with their children on essentials.
My personal feeling is that when limited and controlled (i.e. not letting your 18 month-old watch the Simpsons), it's OK.
But, we also have a rule regarding the DVD player in the car. It's only on when we're taking a trip over 45 minutes. If we're just running around locally, it doesn't come on. There's enough outside and in the car (we have toys in there for them including several books) to entertain themselves.