T.,
Here's my opinion:
Read the book "Last Child in the Woods".
Turn off the TV and get them out of the habit of watching it at all. Once or twice a month, have a "movie night" (or afternoon) and let them watch an appropriate movie. But remember, when they are watching a movie, eg. Snow White, they are no longer using their own imagination, but borrowing someone else's (Disney, in this case). When you read the story Snow White to them, they can create their own image of her in their imaginations, but watching the movie, the image is given TO them, thus preventing them from using and expanding their imaginations.
Schedule into your day at least 1 but not more than 2 hours of playtime with your children - giving them your undivided attention. Other than that, they're on their own! But be ready with suggestions when your daughter comes looking for you to play with her.
Provide them with open ended toys to play with - things they can use their imaginations with to play many different things. (my children LOVE their Bilibos, and never cease to amaze me with how many different ways they can play with them)
Sand and/or water tables are wonderful inventions!
Make them (yes I said make them!) play outdoors at LEAST two hours each day. Dress them for the weather, and ship them outside. Of course, you'll want to babyproof your yard, just like you do your house.
Research the Waldorf philosophy, and see if you would like to incorporate it in your home. Basically, it's letting the children play a lot, and help you with household chores a little, so they are learning good work ethics and handy skills - this includes cooking and baking. And art and music and storytelling are a big part of it, also. But mostly, letting the children play freely and use their imaginations. You can get lots of ideas from Waldorf homeschool books.
So that is what I think! : )
Blessings,
J.