Precisely. There was a point where there was some interest in playing home videogame consoles while on the road. That aided in the adoption rate of rear seat entertainment systems in SUVs and minivans that had A/V input via RCA jacks. Sega Genesis and Super Nintendo Entertainment System primarily... Then television shows on MTV popularized having a PlayStation console in your pimpin' ride. Eventually this spread to other systems, such as the Xbox.
But even as Barney videotapes had begun to be popular with preschoolers, older children had begun to become immersed in GameBoy. I didn't understand it, still don't, because the technology in a GameBoy has always been crap from its first introduction... But that seems to have been a harbinger of times to come.
Because as time passed, and mobile phone technology became less expensive, texting simultaneously became more popular. Then you could play rudimentary games on phones, that were actually worse than GameBoy, but people were still enthralled. Once viable, fully interactive, full color touch screens were available, full blown games could be played on phones, and it was over.
The mobile platforms are now more lucrative than either videogame consoles or PC gaming. Since tablets are based on the same technology and have larger screens, they too have seen a revolution in mobile gaming. The ability to stream video from YouTube, Hulu, and NetFlix has been a revelation. And being able to take along your favorite movies and television shows without a stack of DVDs has been a boon. The fact these devices can also be used to communicate with audio (as a phone), video (via Skype), photos (Instagram) or good old fashioned text (e-mail, Facebook) is for all intents a bonus.
So, yeah. Recognizing that everyone in the backseat will have their own personal screen in front of them, as a phone or tablet, goes a long way toward eliminating the rear seat entertainment system option. Much like other luxury appointments, they are a matter of times past, that can be added for nostalgia by willing automotive custom shops.