For years we have had a simple rule in our house. When you play don't break any of the Ten Commandments because we don't want to practice sinning or "play" sin. They are not allowed to pretend to be something that they are not going to be when they grow up. For example, they cannot pretend to be the "bad guy". We have pretend bad guys and that has always worked for us.
We have four boys so we have had to set our standards high and be very creative at the same time. We have toy guns and swords and we teach about the wars and history. There are a lot of wars in our house, but it is educational and fun at the same time.
We need to be constantly seeking the Holy Spirit on how to parent and how to live. There is so much freedom in that. We believe in a balance. It is not good to be one extreme or the other. The only thing we are extreme about is our standard of God's Word being absolute truth and that influences what we watch, read and do.