My kids are 5 and 7. First and foremost, with any parenting decision, you should try to be honest with yourself about what your kids are actually like. If your kids are doing well in school , seem to have friends, seem to have interests, and overall seem happy, then you should remember to have license to take it easy on them. The goal is to raise a happy and healthy adult not to impose arbitrary sets of rules. If they are on the path of being happy and healthy then you can relax a little.
We try to keep our kids screen time under around 2 hours a day on weekdays and we don't stress too much about it on the weekends. Being that they're in school all day, it's not too hard to keep it under that time frame during the weekdays. If they were watching TV for more than a few hours straight on the weekends we'd probably kick them off just to encourage a little variety.
To us the important part isn't necessarily the raw hour count, but rather what they're watching and that throughout the week they have a life filled with a diverse range of activities: playing with their friends, playing outside, physical activity, reading, etc. If they're living a diverse life, I don't see including TV as part of that life as an issue.
It's also important to me and my wife that we have time to spend together without the kids throughout the week. Frequently that time is afforded by a couple hours of the kids watching TV. An insignificant price to pay to keep the connection I have with my wife going over the years.
It's really easy to treat screen time as some kind of evil that should be avoided at all cost, but I'm personally not convinced it's all that damaging if consumed in moderation. Realistically it's also just a fact of our modern life and fighting it is going to cause so much more strife than learning to work with it.
YouTube has some of the most interesting and best content around, but you have to be diligent to prune the algorithm periodically to keep suggesting interesting content and not just mindless clickbait or advertisements.
Video games are very stimulating and there are many kid-friendly puzzle games that I think have taught my kids how to properly reason through a problem.
I'm sure this will get much more complicated as my children get older and I have to start worrying about pornography, social media, and other unsavory content, but at this young age I think it's okay to let your kids have a little screen time be a part of their life.