I find it rather ironic that we're using the generation that brought us weed, drugs, and sit-in protests during college as a reference for upstanding youthful character.
I fall into that category, and because of that I made sure my kids understood from early on that they have choices and that with those choices comes responsibility to accept the consequences.
Yes we indulged our kids just like everyone else does (and still do) but they also worked in HS and learned the lesson of what it is like to actually earn money and have to spend it. My daughter didn't do so well in that lesson but son did. She has a sense of entitlement (towards certain things) that my son never had, and I am pretty sure that the people he worked with along the way had a lot to do with that.
This is not a bad thing, but it is part of growing up and learning that you always cant have it your way, and you cant tell me that kids who are pretty much given what they want, don't have any sense of entitlement?