My 9yo has had a Nikon CoolPix since he was a toddler. Got it for FAR less than a 'kids camera' on sale over xmas many many moons ago (For apx $50). He also got a Flip 18mo ago (also $50, amazon electronic monday sale).
He treats, and has always treated, his electronics very carefully. The camera is "only" 6mp NOW, years later, but it's still better than anything on the market for kids. And works out, now, to less than $10 a year. GREAT buy.
If you think about it: Toddlers throw sippy cups, but place glasses very carefully. Children jump on the bed, but operate DVD players better than adults. Children can VERY easily be taught what are "toys" and what are NOT. And they treat them accordingly. Ditto, non-toys just last and last and last. Toys are built shoddily and break.
I'd strongly recommend waiting for either labor day sales, or the cybermonday sale at xmas. You can easily get a $200 camera for $50.