Olympus Stylus Tough-3000 (mju Tough 3000) review
Bought this for my 5 year old daughter as a birthday present.
The reason to get this camera is not its picture quality, but the fact that it is durable and waterproof. It already survived a 1,5 meter drop on the first day of use and is good as new.
Perfect for a kid. For anything else, unless waterproof is not needed, I'd look somewhere else.