Interesting article. I believe it is the parents's job to say no, and to teach kids how to be smart consumers. I think there are a lot of lessons that can be gleaned from having to save up one's own money to purchase a new item, from learning to wait to how to prioritize expenses, as well as to teach the ways advertising tries to influence consumers.
I was just wondering the other day what steps advertisers will take with my kids' generation, who are growing up having the ability to fast forward through TV commercials or direct stream commercial-free video. I'd be curious to see if the "nag factor" decreases or if marketing to kids will just shift forms to accommodate for this.