If you want one with a camera you will have to get the more recent model. I have an old one which is great for checking emails and listen to music on the move, Facebook etc.
Be careful how you set your kids up with access to the App Store though as some parents have had nasty surprises when they use their account with a credit card enabled.
The only downside I guess for a younger child is how you monitor what they are accessing on it, at least on a PC you can check more easily or add parental control software.
I would say get one but monitor it.
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