Let's read that before spending a bunch of effort debating only a single sentence of it.
(It didn't take me long to find. It is the speech he planned to give, not a transcript, so there may be some minor differences in the actual address.)
He's speaking at a HBCU to a largely if not all black graduating class. This isn't Stanford or MIT. I know theres a blind spot to the inequality African American students face and that this is a sensitive issue, but I don't think telling African American students who are graduating college to be wary of a lot of the distractions these days such as xbox and twitter is a bad thing.
I could go on for a bit about why, but Obama lays out the statistics for you...
American students are ranked about 10th overall compared to top-performing countries. African Americans, however, are ranked behind more than twenty nations, lower than nearly every other developed country.
I would say that Obama is inspiring a generation of African Americans to work harder and strive for more because inequality is still pervasive throughout American society and education is the key to overcoming this. Why is it so hard to miss this message?
If I read his speech on my iPad, does that make it a distraction, a diversion, or entertainment in the President's rubric? Am I being entertained or emancipated? It depends on who's doing the consumption and to what end.
Am I being overwhelmed with an unmanageable deluge of information? That's the argument the church made against the Luther Bible and the printing press. Information wise, we've always been capable of overwhelming ourselves by scanning a landscape, listening at the shore, or staring into the night's sky. Is reading a novel educational or entertaining? Does it depend on the nature of the novel? Is there a quantitative basis for that classification, like the number of neurons rewired by ingesting the novel? or the improved efficacy or performance of the system after ingestion?
Distractions, amusements and entertainments are the means by which our minds extend themselves to qualitative and quantitative changes in the information landscape: in information space, we evolve through play. Playing with information yields further information, knowledge, and maybe some wisdom. Sometimes play spills to the physical realm as artifacts or shared experience. Differentiating between "education" and "entertainment", "entertainment" and "art", or ranking things in terms of "usefulness" is post hoc analysis geared to reinforce the status quo, its information taxonomy, and its hierarchy of cultural value—an increasingly unmaintainable fiction, the acknowledgement of which would invalidate the blessing being conferred on this cohort of lemmings by the establishment through the President's words.