New camera for 10-year old?

Certainly a compact system is ideal for a small handed user.  If you are working closely with her the pen or a nana sonic GF deal would be great right now.  If its is strictly for her use and you want nice programmable settings and manual set ups, I think the XZ1 deal for $199 is a great f1.8 fast p&s that she could learn a ton with and progress to system camera later.

My 2 cents.

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Here's to learning something new everyday, and remembering it the next.