Well, kids
are stupid when it comes to advertising, and there are plenty of studies that show kids are powerless against advertising. Kids do not understand the concepts behind advertising until past a certain age (see the AAP policy statement in the OP, there are some good references there). Recent studies have shown that children do not even understand that commercials are 'selling' them something until 7-8, and that they do not understand the concept of commercial persuasion until 11-12 (
ref). I don't think there is much to debate over whether kids 'get' ads or not. Whether or not the parents can compete is another story, and I don't think it's one or the other. More likely that there has been some change in parenting over the past few decades, in addition to a rise in advertising, which compound one another. I just think that it is more practical to target that which can be regulated in the short term, while trying to correct the parenting in the long term.