For anyone shopping for a camera this holiday season - who is looking to spend under $100.00 I will toss this word of caution out. Higher megapixel does not always mean higher quality pictures.
You have to think about the situation where the camera will be used (indoor, outdoor, natural lighting, etc etc)
Higher megapixel camera with very very cheap lenses are not good cameras - not matter how you slice it.
Instead of shopping based on megapixel - shop for lens size instead.
I'm not talking about zoom (digital vs optical) I'm talking about the physical size of the glass lens on the front of the camera.
There are tons of really cheap cameras that literally have pin hole lenses - and YES they take decent photos - but only in 'perfect' lighting.
Plus - megapixel count really only come into play when you are going to enlarge photos well beyond 8X10 OR you are going to be zooming in on a specific aspect of the photo AND printing that portion of the photo.
For the average/casual camera user a 5-8 Megapixel camera will due a good job - AS LONG as it has a decent lens on the front to capture the actual image.
Also another point to remember is this - if you are shopping for a mid-priced camera, the further the flash is from the lens - the better your photos will be.
By placing the lens very close to the flash, it really blows out the white balance in your photos and makes from horrible washed out photos.
I am a free lance photographer and always enjoy helping people take better photos because at the end of the day - photography isn't so much about the equipment as it is about the operator. If your have a good concept of composition - and a basic grasp on lighting, your photos will be better than average.
Also - I will add this, the best gift you can buy your child when you buy them a camera is an inexpensive coffee table type book of work by a famous photographer AND a Photography for Dummies book. OR better yet take them to an art museum while they are showing the work of artistic photographers. Give them something to aspire to! Art is a real eye opener for young minds, and what those young minds can come up with is simply astounding sometimes!
