I am yet to be convinced of the benefits of video games for children unless they happen to be of the mind-calming variety ( I did not know that they even existed until hearing a story on NPR about the genre). There is enough stress and excitement in a modern day kid's day to need an additional surge by way of a fast paced on-screen game.
I'd much rather they expend the energy in a physical sport. If their minds need a work-out there are many time-tested ways to do that as well - strategy games, logic puzzles, creative DIY projects come to mind. Littlebits sounds like the happy medium between off-line and online world for learning while having fun. As the technology matures, it can only become more accessible and hopefully easy enough for young kids to work with.