It's not a false dichotomy at all. The discussion is about constant parental attention to childrens' activities; your parent points out a situation with the complete absence of such attention, and happy children nonetheless, as a counterpoint to the narrative. It's a good point and it's unfair to flippantly dismiss it.
You're right. It could've been used as a false dichotomy, but that was an uncharitable reading of the comment. I do disagree that it's a good counterpoint. It relies on a completely unsubstantiated claim that people with these kinds of upbringings turned out just fine and have no lasting issues because of it.
Maybe not False dichotomy but agreed that it isn't a greatest comparison. Plus my Grand parents siblings were a bunch of yokels that would barely know what ballet looks like. I'm just tired of my kid's friends all doing everything.