Looks like nowadays there are a lot of telugu programs on TV (thanks
to the cable TV and the availability of more channels). The ball is
in the viewer's court. The parents should realize the importance of
making their children watch some decent stuff on TV. (I am sure there
will be enough good stuff with so many channels around).
A good step would be to make videos of epics or small tales such as
the pancatantra. They are good choices for Indian languages, and I
am sure they will surely impress children. Telugu software would not
be very effective, unless children (or even grownups) are already
interested in Telugu. This is similar to the "First literature,
then dictionary" logic of Sri Rao et al.
All said and done, how many of us would prefer to hire a person who
has done his bachelors in English medium (to a person who studied in
English medium)? Economics drives these things to a certain extent.
(It is clear when we claim to have English literate labour force).
Just my two cents worth,
Sastry.