Personal movie-watching on PTVs, DVD players, laptops and such should be at the discretion of the viewer... barring anything outright pornographic, of course.
As with a lot of things in air travel, it again weighs heavily on the idea of common courtesy and class... I was booked in the F cabin on an STL-SFO Mad Dog, with a dead-heading pilot in the aisle seat next to me. When I opened up my laptop to watch a movie, I was careful *not* to select my copy of "Jackass: The Movie" and instead viewed "The Mosquito Coast."