The Husband is set on selling the iPod Touch on Ebay. (He had won it in a contest at work, and being the Android Family we are, we never even opened it.) We came up with a comprise of sprucing up our old G1 instead and wrapping it up for him. A cool new cover (what boy doesn't love skulls) and headphones, his favorite free games and a few paid (Hello, Pocket God!), his music, links to Lego.com and his favorite sites. The phone will not be enabled, so no cell phone usage yet, just wifi. He already has a gmail account that we encourage family and friends to contact the kids with (and we monitor) so he can really start using it. I suspect the Husband thinks it will spark a bigger interest in coding in the little guy too.
Whenever we are on a road trip or waiting anywhere, the kids constantly ask for our Android phones to play with. Usually they are in use for GPS Navigation, Music player or just plain old phone so they don't get it. One morning I couldn't find my Nexus One as we left the house and I asked the kids. The 6 year old pulled it out of his toy box "Oh, here it is". So I think this will solve several problems for us.
What do you think? Is that too much for a young child or do your kids already smartphone?