Thank you for the great and thoughtful replies.
Let me address a few points. Someone asked if my DD wanted these things (cell,tv, etc....)and was not allowed to have them. She wants a cell phone but I'm not ready to go there yet. As for the rest she really doesn't and that's what I'm trying to figure out. Does she not want them because of age? Believe me I'm not complaining about that.
Someone said it sounds like I disapprove of the way my niece is being raised. I can be honest and say yes; some I think is over indulgence. BUT I'm asking myself the same question. Am I too limiting with my DD's? I want to know if my niece is the norm and should I give my girls a little wiggle room to breathe.
I think a few of you also brought up another great point about personality which I really did not think about.
I don't even like the word "normal". It sounds like both your daughter and your niece are pretty typical kids. There are always parents who do things with their kids or allow their kids to do things that I'm not cool with, and there are parents that I think are suffocating their kids. They're typical, too. You have to make your own path with your kids. Ask your daughter what she thinks of her niece. Ask her about what she wants, what she likes. Talk to her.
I will talk about the electronics. My almost 13yodd has surpassed me. She can whip out presentations, knows Excel, makes movies and Vids, narrates art vids or AMV's with her cyber community.
Plus she has a pad and draws her own art.
It is one of her "callings".
We started like everyone else when she was young with reg. computer stuff however she had a serious interest in creation and we fostered that.
She has a cell phone and doesn't use it.
Older DD I think was born with a USB port in her side

, I have to drag her away from the computer/xbox/digital camera. Younger DD is all about dancing. I think both of them need some balance so older DD dances and younger DD also plays the xbox with the family, but I don't limit what they love. I'm a HUGE fan of kids being busy and being passionate about something, I never had
time to get in trouble, I was too busy with things I was passionate about in school...
I think the secret is to understand what your daughter thinks is "cool", define what is not appropriate in your family, and let her know what the boundaries are. I have no problem getting the girls cell phones when they need them (right now, at 9 & 10, they're not away from me enough to need them). I WON'T be getting them text messaging, though, I think it's a distraction from their studies, promotes bullying, and frankly, I can't see the benefit of it other than social blah blah blah. And if they want to blah blah blah, then use the phone, not your thumbs. When they ask me for a cell phone now I don't say "No, because I said so," I say "can you show me why it's a necessity?". When they can successfully show me why they need it, they get one. Offspring of attorneys learn cogent arguments early, lol...
But is that "right"? Who cares? Maybe not for you, it is for us. It's probably a good idea to have a dialogue with your daughter now about the niece-what you think is good about the niece, what you're concerned with. See what your daughter thinks of her. My kids regularly shock the daylights out of me with what they talk to me about (most of the time in a good way

).