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My daughter wants one for my 6 yo grandson. I gave him a mostly broken iPhone 3G and he reads books and plays games on it. She thinks the Fire would be a perfect reading/learning device, great for quiet time and excellent in the car as a replacement for the DS and other handheld gaming devices.
It was suggested on another forum that you could create an account for the kid and fund it with gift certs while using your own email address (or alternate). That way they'd have their 'stuff' as they grew up, you would be able to monitor content and purchases and hand it over to them once they got old enough.
That idea sent me into nerdspasms. I thought it was pretty awesome.
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