Absolutely they can watch TV in the morning. Most afternoons the TV stays off but if they want to watch a some ABC 2 or 3 in the morning I don't see any reason why they shouldn't. It doesn't interfere with getting ready for school. I suspect the neighbours prefer the TV days to the jumping on the trampoline and running about in the garden days.
Hahaha, I could have posted the exact same thing! TV doesn't interfere with my three kids getting up and ready before school . They don't last long in front of it before they are out on the trampoline or kicking a footy waiting for me to take them.