It's not that they obliterate creativity, it's that they shape it in one or two very specific ways. Let me tell a story with some background as an example:
Our rule in our family is that smart devices are a reward; finish your chores, get x number of minutes on tablet; do a good dead unasked get x number of minutes on tablet, that sort of thing. The one major difference in our family is that all smart devices (save for GPS) are banned on road trips/car rides. Boredom is essential to the developing mind and fosters imagination and creativity. I am convinced of that.
Recently, we had some of our child's friends over for sleepovers around his birthday. We live in a rural area, so playing in the woods and dinking around outside are sort of standard. Some of the kids' parents were uncomfortable with us just letting them go tear ass around in the woods, so I went with them to supervise (another issue entirely). I noticed that the games they played fell into two categories; those influenced by smart devices and those not.
The kids who had little- to no-access to smart devices built dams, played forts, looked at bugs and tried to figure out how to make them fight - the sorts of outdoor activities you would expect to see on Leave it to Beaver or some other old show like that.
The kids who have constant access to smart devices played as if they were in fortnight or some other videogame and were narrating their experience/acting like a streamer in more and more outrageous ways to get attention from their friends.
It's not that they weren't creative, but they were creative within incredibly specific parameters established by a videogame company.
So, I don't know that they obliterate creativity, as much as they focus it into something that is different sorts of creativity. Good, bad, or indifferent I don't really know. I think it's probably bad, but don't know for sure.