Last year, for DD's 8th birthday, her grandparents bought her a Kodak EasyShare C613 which was about $100 and it is AWESOME!!!
In December, my mom bought my younger DD (age 4 at the time) a Fisher Price Kid Tough for Christmas and she was really excited about it!! We open it up, take pictures and it is HORRIBLE!!! Things that were completely stationary looks like they were moving at a horribly fast speed, all blurred and just nasty. I even placed camera on counter and took a picture of the fridge (NOTHING moving!) and it looked the same. We took it back to Target, my granny kicked in $20 and we got her the Kodak EasyShare C613, same as her sister.
Now, I almost ALWAYS have a camera with me and I am horribly anal about putting the strap on my wrist so they just think this what you do. We had serious discussions about how this wasn't a toy and you NEVER pick it up without putting strap on your wrist, blah blah blah and neither one has dropped theirs. We have taken them to the zoo with them and their favorite thing is to run around the house and take videos of each other. I love digital for this reason!! DELETE DELETE DELETE!! LOL So, if your child is able to take care of something, I would recommend going Kodak. EasyShare cameras are so great (we now have 4!) and easy and the software that comes with it is really user friendly and the quality is what I need to put in my scrapbooks. And seriously, you can usually get them on sale for about the Kid Tough price. And it works. And it lasts. And they can use it longer than just a few years. In fact, I frequently snatch one of their cameras because they fit in my pocket better, hahahaha!
Hope that helps!!