We have one we got last year when DS was 3. It is a solid phone that can take some abuse and the double view finder is a plus for younger kids who can not always close one eye to look through a single hole. It also have very simple controls. Just the very basics. Point and snap. Save/erase. Move picture your are viewing back or forward. This is what makes it a good children's camara.
The screen quality is not great. Similiar to a cell phone photo, before the cell phone camara became decent. Very grainy. We have not printed out any photos so I can't tell you about that quality. I think the quality is fine for the purposes of a children's camara, which in my opinion is:to allow a child to mimic adults in taking pictures; allowt them to experment with the art form of photography; allow them to show you what they find interesting and important visually in their world.
My DS liked the camara but has not used it that much, maybe because we never printed out the photos (we don't even make hard copies of our own, we are just really bad about that stuff) but I think it was more that he is just not a very visual person. He is more audial (if that is the right word). He had gotten much more use out of his FP3 player, which was Fisher Prices other big electronic thing last year. Regardless of my child's interst in the toy I do think it is a great gift/toy for the right child.
There was a thread about these camaras last November/December which you may want to look for.