For those commandments that are black and white then as a family we strive to be 100% committed and without compromise. I would generally summarize those as what is found in the temple recommend questions.
For everything else I feel we are taught principles and have our Christian liberty to determine how we personally and/or as a family can best observe, serve, and worship. I've read and heard lots of opinions about watching the super bowl on Sunday. I think some of those opinions are rightfully founded in Sabbath day principles. If we weren't watching at midnight then we would maybe watch at home but not make a big deal out of it. By doing at midnight we can enjoy a bigger party and the fellowship of other friends who may or may not share our same views or be super orthodox about it. I think basically as a family we strive not to condemn others for using their liberty different than we do -- and we try to make our own decisions that work best for us and provide positive experiences.
In summary, I hope my kids learn that we can, to some extent, participate in certain "worldly" activities without compromising our personal standards. I take this same approach with business events such as cocktail parties, etc. Maybe it is just basically a social inclusion issue. But our experience is there is more to that is hard to completely articulate...