Both my kids (now 10 and 6) have variants on this theme; they've got models that were one generation old when I bought them, so pretty reasonably priced. These are quite respectable cameras that produce perfectly decent results, run on AA batteries and have stood up to the sort of treatment you might expect from kids of that sort of age - my daughter has had hers for about 4 years, my son for nearly 2, and both still work! The A460 is currently available "refurbished" (many are end-of-line) via the Canon outlet on ebay for around £35-40, which makes it a steal. Those Mjus are great, but it's a LOT more money.
Oh, and if I had bought my daughter a Sindy doll when she was 8, it would've cost me a trip to A&E to extract it...