Sirius has announced a deal with Chrysler to provide satellite television in vehicles. The service, called SIRIUS Backseat TV will be available in some 2008 Chrysler models.
http://biz.yahoo.com/prnews/070329/clth046.html?.v=93
Since it is part of the back-seat entertainment system, which many vehicles already have in some form, I tend to think this would not be a driver distraction issue. At least not any more of a distraction than what is already in vehicles.
That’s my “transportation opinion”.
My "parental opinion", as the father of a 4-year old, is that kids watch way too much TV as it is. Turn it off and play a driving game, or talk with them instead.