Here's where things go awry for me -- not the iPhone/iPad/iTouch gizmo deal at all -- in fact, I now have almost all of my rehab patients in my clinic using one of the three...
BUT...I think I need to purchase some Apple stock...unlike that standard cellphone you might give your 11 year old to take out with them, throw around, lose, bang around, dent up, etc, the iPhone cracks easily - one swift bang against a counter and c-ra-ck...and the warranty does not cover damage you do to your phone. Plus, unscrupulous adults will have no problem stealing a kids iPhoneiTouch/iPad compared to that lime-green beater cellphone...
I say -- go ahead and buy 'em whatever they want....but wait for me to buy some stock first since they'll be paying for replacements soon...