FWIW I wasn't just suggesting a pink camera (it's available in other colours) but one that I think has good 'gadget appeal'.
A big compact with a small screen doesn't seem as 'cool' as a small compact with a big screen IMO. As Bob says it's about buying something appealing that an 8 year old will remember they own and want to use...something they can show their friends! I was going to suggest a Canon ixus or Sony T series as more expensive options (also available in pink I believe ).