I'm in the camp that in small doses computer time is a WONDERFUL babysitter and much more interactive than TV. Bear (almost 3) spends about 1/2 hour ever couple of days or so on starfall and disney and pbs and and and... They are all bookmarked on the boys' profile and he can turn on the computer, log onto their profile and get to the site he wants all on his own.
Often the two boys play together on the computer, Wolf helping Bear through some of the more advanced levels where his mouse skills just aren't up to par. It is adorable to watch.
I am a very big believer in teaching kids to occupy themselves for as long as possible as young as possible. It builds imagination and gives VERY important life skills. I've seen kids who literally CAN'T occupy themselves without adult help at age 6! I have had to babysit one child like this and simply refused to occupy her. I told her that we have a house full of toys, go find something to do. She looked at me like I was nuts but after awhile realized I wasn't kidding. Now she can come over and play by herself or with my boys for about 10 minutes without looking for an adult for input. It's normally just checking in at this point, but still...
I don't mean neglecting or ignoring the kids, but simply asking them to spend a few minutes without your input. With Wolf it was a box of junk mail for him to go through while I did actual mail and bills. We were doing the same thing, but not together. From there it was looking at books on his own while I read or did chores. Then coloring in his high chair while I cooked, etc and so on. With Bear it was playing with his brother or with blocks. Either way I now have an almost three year old and a five and a half year old who can play together or apart for half an hour or longer on their own using their own ides and imagination and coming up with things to do independently of me.
About the mouse issue, my friend has a wireless mouse that is small and (obviously) non-corded. It looks like it would work well for smaller hands. I would wait till the computer was no longer viewed as a teething object though...
