HayGan, While i am sure the guitar toy that you mentioned is ok -- it is just that -- a toy. If the OP's dd wants a genuine real guitar - she is better off buying one. I had gotten my dd a toy guitar either last Christmas or the one before, and it just didn't do it for her.. now she wants the real thing.
I called my music store yesterday - after all this discussion, and bascially they told me this: If my dd7, REALLY wanted to start on an electric guitar, she could, they had a red one there for about 129.00, but you also need an amp. They DO do repairs on other instruments, that they don't sell, however, starting Jan.1st they will no longer be doing repairs on "department store" stuff.. it's not worth their time, (which i can totally see), I asked them about Luna brand and Daisy Rocks brand - they honestly said they never heard of Luna (and they have been around quite a while), but they said that Daisy Rocks is decent.
So....... my conclusion on this is - I am goin to get dd just a basic wooden acoustic guitar - that i was shown by this store -- for 69.00, and a case (additional 20.00), and at least i know they will tune it for me, and that it was sold by them, and if she ends up at this particular place for lessons, i think it will just work out best for me.. HOWEVER, that being said, i am also going to be doing this::
Since i know my dd would LOVE a PINK electric guitar (or so she thinks), i am going to leave her a note from Santa.. That if she takes lessons and takes care of her acoustic guitar for one year, that next Christmas, he will see to it that the elves will make her a PINK electric guitar with amp.
I think that is the best way for me to go. Then if she sticks with it, and takes care of it.. i will be ok spending 300.00 for a pink electric guitar from Daisy Rocks and amp next year.. but to just go off and buy that amount now is just crazy to me.. when i am not even 100% positive how long she will want to play.. kwim?