I regret that I found this thread so late.
Video games promote hand-eye coordination, fluid intellegence development (reactive problem solving ability), computer trouble shooting, Visual reaction time improvement, Team and/or individual strategy, typing ability, pattern recognition, etc etc. These are all very important life skills in my opinion.
I make all of my money based on my fluid intellegence especially with regards to technology, and I developed that skill through hours of video game playing.
All the same bad scary stuff that video games cause were said about Chaucer, Shakespeare, Swing music, Rock and Roll, Comic books, etc.
There are great games which inspire thought, creativity, challenge traditional thought processes and launch you into another plane of reactive, imersive problem solving. There are mind-numbing games that leave you drooling on the couch. Most of the "Educational" games I have played or seen fall under the mind numbing category. Most of the "Player's choice" games that I have played fall under the stimulating category.
I think that is one of the main reasons why people hate games... they say "ok we will try the safe educational ones" and they are crap.