I think it boils down to the context of what Data said... he said the form of entertainment
did not survive, as if to say passive watching of something on a screen was outdated.
He could be right, but I also think it might be underestimating the concept a little.
But the real insinuation was that there was something wrong with it too. I noticed this from the "Neutral Zone"
Sonny: How do you turn on this here teevee?
Sonny:Yeah, boob-tube... you know. I'd like to find out how the Braves are doin' after all this time.Probably still finding ways to lose.
Data:Oh -- I think he means television, sir.
Riker: From what I have already seen of our "guests", there is very little to redeem them. In fact,it makes me wonder, how our species ever survived the twenty-first century.
The only conversation Riker had with them is pretty much what was in the quotes above. Ralph mentioned something about checking his accounts, but that was it, nothing hard or serious.
From that you can guess that because 20th century humans liked to watch activities on a 2 dimensional screen, 24th century humans thought they were hopelessly primitive.
As far as the show, all I've ever saw people use it for is communications, searching data, music, maybe video games.
Entertainment? Plays, concerts, Ten Forward, Holodeck..
I think at the time, Trek had a certain idea of what advanced humans did for entertainment.