We got my 3 year old a Kindle and use FTU on it. It's great, IMO, as it lets them try out games, books, apps, etc. without buying them first. We are prime members so it's about $3 a month. I don't have an iPad so I can't speak to how it's different.
My daughter's favorites are the interactive books, the hair salon app (which is hysterical) and Fruit Ninja.
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