In March we got Nook Colors and the kids (8 & 3) each have their own. Currently the NC's are stock and running CM7 off of a 16gb Sandisk SD card that I did myself.
My 3 year old loves the Little Critter apps/books and the Dr. Seuss books. Once rooted or running CM7 you can get apps from either the Android Market or Amazon's app store. The benefit of rooting is you keep the B&N interface and stock reader all in one place. It isn't difficult to dual boot though.
I think at $150 for refurbished that NC is a great deal since there is much you can do with it.
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