It's not entirely about what they're watching (though even what you are describing sounds awful), it's about what they're missing out on in that time. It's 2 hrs every day not communicating with another human being, not developing motor skills, not problem solving etc.

I have 2 kids under 5 and we have ~0 screen time (unless we are having some sort of crisis and need a distraction for a few minutes). We spend time with similar families, and those with more screen time. I'm not trying to sound superior when I say there is a VAST difference in ability between the two groups.