I was going to suggest an ipod too. Not a touch, coz they're too easy to break. But maybe a shuffle? Something to just store music on.
DD got a digital camera for her 10th birthday. She got a generic brand ipod last christmas. Stores photo's & music.

Have you thought about a DS? My girls both have one (lite) & I'm getting DS one for christmas. I normally wouldn't, but I'll get second hand. & mainly because we do alot of long car drives. Even without games the kids can all connect together through them & chat & draw pictures & send them to each other. my girls only get along through their DS's