In other words, being watched or tracked will definitely affect a kids behavior.
It's still free roaming because the kid is 100% in charge of where they will go. That's the part that matters, not that someone can tell where they are.
But what scares me more is how this trend has the potential to normalize surveillance in general. It's not uncommon to for people to treat their employer or the government as a surrogate parent. So why wouldn't kids raised in a digital surveillance family accept a digital surveillance state?
Some adults enjoy playing pretend with kids, and some kids enjoy playing pretend with adults too. I would not characterize it as a no gain situation.
You are mixing up propgandists who run with theories as though they are proven fact on bad faith to push agendas without a shred of evidence.
Law enforcement engages in theorizing about conspiracies, intelligence agencies engage in theorizing about conspiracies, almost every country has laws making criminal conspiracy illegal. And there are plenty of conspiracies that turn out to be true, they also tend to be quite banal and human rather than sexy hollywood aliens, global gov conspiracies, etc.
Attacking theorizing with such a broad stroke is attacking critical thinking not disinformation. You can't decide what path of possible truth to persue without theorizing.
If anything santa and the easter bunny are gentle introductions for kids to learn how to tune their BS detection circuit.
Most children learn to distinguish reality from fantasy between the ages of 7 and 10. Conspiracy theories are based on the idea that some sinister entity is hiding some truth about the world, and that only a select few are aware of it. People are not born with this level of cynicism, and if they eventually acquire it, it will be during adolescence or adulthood, once they're already able to distinguish fantasy from reality. This is an entirely separate thought process than the one involved in child fantasies.
While pretend play may not be as crucial to development as previously thought[1], it's still a healthy and fun part of growing up. It increases the familial bond, and gradually prepares children to a less magical world. Let them enjoy it while it lasts.
[1]: https://news.virginia.edu/content/pretend-play-may-not-be-cr...
Everybody, especially kids, deserves to have some alone time and actual agency.