Haha, letsknit - yes, picking it up and considering it DOES count.
I have my CPH sitting next to the chair where I watch TV. I'm at the point where I need to start decreasing for the sleeves, and because it requires paying attention, I tend to pick up something else that is more mindless (a couple of christmas colored dishcloths I need for hostess gifts, my pet snuggles, etc.) As long as you are knitting something
, it seems OK to me.