My girls are 9 and almost 12 and they both got iPod Touches for Christmas last year and they both use them all the time. Like pretty much never leave the house without them, they are constantly using them lol so it was money well spent for us! They load the music they want from our iTunes library (and they love getting iTunes cards for gifts so they can buy new songs & apps) and then they have all their favorite apps they like to use (YouTube, Netflix, Pandora, games etc). They also are able to text & FaceTime with them while on wifi.
Also make sure you get a good protective case for them. My girls first picked out cutesy cases that don't really protect the screen very well and my older daughter shattered her screen when someone bumped into her and knocked it out of her hand and it hit the ground face down. Thank goodness for Toys R Us's $25 warranty replacement plan that I had bought, they replaced it with a brand new one for free! So after that the girls got Otterbox cases because they are much more protective!
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