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My friend's boy is 11, and loves his PRS-300. that having been said, there's a couple of things to consider
I would think it's a great gift, however one must take into account that any e-ink screen is fragile. This is one thing that should be very strongly impressed upon a potential recipient, whether it may be a child or an adult.
Another factor that may be worth considering, is how will he be obtaining his books? I highly doubt that a 10 year old has his own (or access to) a credit card. Nor does the average 10 year old like to read public domain books. Will Mom and Dad have to take care of the purchasing and management of the device? If so, make sure they know the ins and outs of the ebook world, including DRM concerns and geographical restrictions.
Finally, there's the initial cost. If you can find a PRS-300 these days, that's a nice beginner Reader. I would recommend getting an AC adapter for him to be able to charge on his own without having to hook up to the computer.
You might also want to look into a Kobo, which is perhaps a better choice for a 10 year old in my opinion as far as price goes, however I love my Sonys, and would gladly say get him one if the price isn't too steep.
Anything that gets a kid to read these days is a great investment as far as I'm concerned!
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