Is it worth keeping in 2023 or just don't bother and give it to the kids? Thanks.
The sensor in that camera is decent (BSI CMOS), but probably worse than the sensor in your phone. However, the 20x zoom is something your phone can't do. Assuming it's in good working order, you can get some very nice pictures from that camera.
If it's your only camera with a meaningful zoom lens, and if you think you'll make use of that, keep it and use it. If you don't need what it can do, give it to your kids for them to enjoy.