No Imagination

I am wondering... Is it still called imagination if you are only imitating what you have seen and heard? It seems that my kids are constantly discussing or quoting or imitating something they have seen or read. I'm trying to sort out my thinking here but I don't want this to be me complaining. Anyway, I would really like for my kids to talk about more real life things. But even when they talk about real life things it is usually about which toys their friends have or what that friend has seen on some show. I think maybe I am expecting them to think more like adults. I am really confused. Sometimes I just want to chuck the TV, all videos, and all computer games so they will go play and make something up on their own instead of the constant imitating. Maybe I am not spending enough time watching their games. Maybe they aren't doing as much imitation as it seems. Just every time they are around me. Maybe I need to give them more real life things to build upon. But how do I do that? Any ideas?