The Vision 8" tablet sounds like might be up your alley. It's right at the $200 mark. While it's not a lighting fast device, I'd definitely say it would be more than adequate for your kid. It has been touted as perfect for kids and non-tech adults.
Bought my Bionic on release day from Costco w/the pack, knowing full-well there were shiny new devices on the horizon. I can honestly say I have no regrets what so ever. I love my phone and the two items I've had occasional issues with (3g/4g dropping & slight hiss during media playback) are...